The correct answer is: A. Scrap value.
Scrap value is the amount of money that can be obtained from selling an asset that is no longer useful. It is sometimes also referred to as salvage value or residual value. The scrap value of an asset is typically determined by its condition, age, and the current market value of similar assets.
Scrap value is an important consideration in the accounting for assets. When an asset is sold, the difference between the sale price and the book value of the asset is recorded as a gain or loss. If the sale price is greater than the book value, the difference is recorded as a gain. If the sale price is less than the book value, the difference is recorded as a loss.
Scrap value is also an important consideration in the decision of whether to sell or keep an asset. If the scrap value of an asset is high, it may be more profitable to sell the asset and then purchase a new one. However, if the scrap value of an asset is low, it may be more cost-effective to keep the asset and continue using it.
Here is a brief explanation of each option:
- A. Scrap value: The amount of money that can be obtained from selling an asset that is no longer useful.
- B. Going value: The current market value of an asset.
- C. Junk value: The value of an asset that is considered to be worthless.
- D. Second-hand value: The value of an asset that has been used previously.