Clarification regarding consideration of salvage value !! | US CMA Breaking News

US CMA Breaking News


Thank you for contacting IMA. The exam questions should make it clear whether or not to include salvage value in your calculations. If a salvage value is estimated at the beginning of the project, it would be stated this way in the exam question. In that case, it can be used in calculating the depreciation basis. if the salvage value is only known at the time of the disposal, then it can be used as a cash inflow at the end of the project.

Karthryn Bes


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