accounting

How do businesses determine what salvage values to use for their various assets? Are there “hard and fast” rules for salvage values?

  1. 👍 0
  2. 👎 0
  3. 👁 234

Respond to this Question

First Name

Your Response

Similar Questions

  1. Finance

    Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3 year tax life and would be fully depreciated by the straight line method over 3 years but it would have a positve pre-tax salvage

    asked by Nick on April 12, 2011
  2. Financial Management

    Billy’s Chrystal Stores, Inc., has assets of $5,000,000 and turns over its assets 1.2 times per year. Return on assets is 8 percent.

    asked by Anonymous on January 25, 2014
  3. statistics

    We are studying mutual bond funds for the purpose of investing in several funds. For this particular study, we want to focus on the assets of a fund and its five-year performance. The question is: Can the five-year rate of return

    asked by Anonymous on November 19, 2010
  4. Finance

    Risk exposure due to heavy short-term borrowing can be compensated for by: A. carrying more receivables to increase cash flow. B. carrying highly liquid assets. C. carrying illiquid assets. D. carrying longer term, more profitable

    asked by maggie on November 15, 2009
  1. accounting 205

    A proprietor makes a cash withdrawal from the proprietorship. How does this affect the accounting equation? (Points : 1) This has no effect on assets, liabilities, or owner’s equity. Assets decrease; owner’s equity decreases.

    asked by bernagene on July 8, 2012
  2. finance 200

    14. Lear, Inc., has $800,000 in current assets, $350,000 of which are considered permanent current assets. In addition, the firm has $600,000 invested in fixed assets. a. Lear wishes to finance all fixed assets and half of its

    asked by finance question on November 22, 2009
  3. accounting

    On January 1, 2013, an investor purchases 28,000 common shares of an investee at $12 (cash) per share. The shares represent 20% ownership in the investee. The investee's common stock does not have a readily determinable fair

    asked by sherianna on September 3, 2019
  4. accounting

    Timberly Construction negotiates a lump-sum purchase of several assets from a company that is going out of business. The purchase is completed on January 1, 2013, at a total cash price of $820,000 for a building, land, land

    asked by Jamie on August 8, 2014
  1. Finance

    Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3 year tax life and would be fully depreciated by the straight line method over 3 years but it would have a positve pre-tax salvage

    asked by Nick on April 12, 2011
  2. Engineering Economics

    A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $70,000 with $3,000 salvage value after 16 years. The other can be

    asked by Anonymous on March 27, 2015
  3. accounting

    On January 1, 2006, Powell Company purchased a building and machinery that have the following useful lives, salvage value, and costs. Building, 25-year estimated useful life, $4,000,000 cost, $400,000 salvage value Machinery,

    asked by Anonymous on August 2, 2011
  4. accounting

    jim reed manages a fleet of utility trucks for a rural county government. He's been in his job 30 years, and he knows where the angles are. He makes sure that when new trucks are purchased, the salvage is set as low as possible.

    asked by kim on November 25, 2011

You can view more similar questions or ask a new question.