What is the difference between estimated salvage value and cash salvage value????

Amit · 19 Jun 2024

Welcome

Shruti · 19 Jun 2024

Thank u

Amit · 19 Jun 2024

:Estimate Salvage Value: This is the estimated amount a company expects to receive when it sells an asset at the end of its useful life. It’s a prediction made when the asset is initially purchased. Cash Salvage Value: This is the actual amount the company gets when the asset is sold at the end of its useful life. It's the real cash received from the sale. Think of estimate salvage value as a forecast or guess, and cash salvage value as the actual result.