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

Answer Details

The salvage value of a tractor can be calculated by subtracting the depreciation value from the initial cost. The initial cost of the tractor is ₦50,000, and the depreciation value after a year of use is ₦10,580. To calculate the salvage value, we subtract the depreciation value from the initial cost: ₦50,000 - ₦10,580 = ₦39,420 Therefore, the salvage value of the tractor after a year of use is ₦39,420.