A tractor costing N80,000.00 was sold for N20,000.00 after it has been used for 10 years. what is the salvage value of the tractor?

A tractor costing N80,000.00 was sold for N20,000.00 after it has been used for 10 years. what is the salvage value of the tractor?

Answer Details

The salvage value of an asset is the estimated resale value of the asset at the end of its useful life. In this case, the tractor was sold for N20,000.00 after 10 years of use, which means that its salvage value is N20,000.00. Therefore, the correct answer is N20,000.00.