How do you calculate an asset’s salvage value?
In the calculation of depreciation expense, the salvage value of an asset is an estimated amount, and the estimated amount is often zero. With the common assumption of no salvage value, the entire cost of an asset used in a business will be depreciated over the asset’s useful life.
Learn more about Depreciation.
About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years. He is the creator and author of all the
content found on AccountingCoach.com. You can read 1,500 testimonials praising his ability to explain
accounting in a way that anybody can understand.
 | Learn more about AccountingCoach Pro |
Accounting Q&A by Topic
Over 800 questions have been answered in the following categories:
- Accounting Basics
- Accounting Careers
- Accounting Equation
- Accounting Principles
- Accounts Payable
- Accounts Receivable and Bad Debts Expense
- Activity Based Costing
- Adjusting Entries
- Balance Sheet
- Bank Reconciliation
- Bonds Payable
- Bookkeeping
- Break-even Point
- Business Investments
- Cash Flow Statement
- Calculations
- Chart of Accounts
- Cost and Managerial Accounting
- Debits and Credits
- Depreciation
- Financial Accounting
- Financial Ratios
- Improving Profits
- Income Statement
- Inventory and Cost of Goods Sold
- Lower of Cost or Market
- Manufacturing Overhead
- Nonmanufacturing Overhead
- Payroll Accounting
- Present Value of an Ordinary Annuity
- Present Value of a Single Amount
- Standard Costing
- Stockholders’ Equity
Join our Newsletter
 | Receive our free 19-page accounting cheat sheet. Plus, stay up to date with the latest questions answered. |
New Seminar Videos
27 HD videos totalling 4+ hours
 | Bookkeeping Basics Seminar |
| Understanding Financial Statements Seminar |
These videos are only available in our new AccountingCoach Pro members area.