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Calculate the salvage value of a tractor with a depreciation value of ₦10,580.00 ...

Calculate the salvage value of a tractor with a depreciation value of ₦10,580.00 and initial cost of ₦50,000 after a year of use

₦10,580

₦30,290

₦39,420

₦60,580

The correct answer is C.

Salvage value is the estimated book value of an asset after depreciation is calculated.

Salvage value + Depreciation value = Cost price

Salvage value + 10,580 = 50,000

∴ Salvage value = 50,000 - 10,580

⇒ ₦39,420

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