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

  • A ₦10,580
  • B ₦30,290
  • C ₦39,420
  • D ₦60,580
jamb 2021agricultural-science

The correct answer is C. ₦39,420

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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