Question

Net salvage value of fixed assets is equal to __________________.

• A. Excess of salvage value over book value
• B. Excess of book value over salvage value
• C. Working capital requirement in the first year
• D. Salvage value of fixed assets less any income tax payable on the excess of salvage value over book value
• E. Scrap value

Answer 1

Answer: (D)

Salvage value of fixed assets less any income tax payable on the excess of salvage value over book value

Net salvage value of fixed assets is equal to the salvage value of fixed assets less any income tax payable on the excess of salvage value over book value.