salvage value
End-of-life value
Salvage value is the estimated worth of an asset at the end of its useful life—what it can be sold for after depreciation.
A company buying equipment for $50,000 might estimate a salvage value of $5,000 after ten years.
The figure matters for accounting: We depreciated the truck down to its salvage value.
Also called residual value or scrap value.
- depreciationAsset value reduction over time
- useful lifeExpected functional duration
- end of lifeCessation of existence
- metalHard conductive solid
- cash for clunkersProgram trading old vehicles for rebates
amortization · scrap metal · upcycling · circular economy · fixed assets · balance sheet · scrap · scrap heap · wrecking yard · dismantling · impairment · repurposing · capital expenditure · refurbishing · obsolescence · resale · income statement · waste management
- accounting termsassets, cash, expenses, equity, retained earnings
- damage claimsproperty damage, fire damage, water damage, storm damage, hail damage
- Valuationmarket cap, valuation, market capitalization, estimate, worth
- valuationsvaluation, property valuation, business valuation, real estate valuation, estimate
- Asset Valuationvaluation, straight-line, amortization, useful life, replacement cost
- depreciationdepreciation, straight line, straight-line, vehicle depreciation, accelerated
salvage valueacquisition cost
Total expense to acquire
purchase price · book value · replacement cost · cost basis · fair market value