$29,500 is the residual value of the building. The estimated value of a fixed asset at the conclusion of its useful life or lease term is known as the residual value, sometimes known as salvage value.
The estimated value of a fixed asset at the conclusion of its useful life or lease term is known as the residual value, sometimes known as salvage value.
Contractually, residual values are handled either through closed contracts or through open contracts. Remaining value of an asset after it has fully depreciated or after it has deteriorated beyond repair is known as residual value in accounting.
The market worth of the vehicle for the term and the needed miles serve as the starting point for the calculation of residual values, which is then followed by seasonality, monthly adjustment, lifetime, and disposal performance. In order to set the end value as the residual value, the leasing firm will utilise its own historical data to integrate the adjustment variables into the computation.
Calculate the residual value of the building
let the residual value be p :
5,000 = 69,500 - p)/8
40,000 = 69,500 - p
p = 69,500 - 40,000 = $29,500
Residual value of the building is $29,500
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