Question

Scrap value is the net annual letting value of a property, which is obtained after deducting the amount of yearly repairs from the gross income.

(a) True

(b) False

The question was asked in an online quiz.

I want to ask this question from Values, Tax, Funds & Rents etc topic in chapter Valuation, Reports Technical and Design Data of Civil Engineering Drawing

Answer 1

Right answer is (b) False

For explanation I would say: In financial accounting, scrap value is associated with the depreciation of assets used in a business. In this situation, scrap value is defined as the expected or estimated value of the asset at the end of its useful life. Scrap value is also referred to as an asset’s salvage value or residual value.