The estimated value of a built-up property at the end of its useful life without being dismantled is called:
The estimated value of a built-up property at the end of its useful life without being dismantled is called Salvage Value.
Salvage Value:— If a property after being discarded at the end of the utility period is sold without being broken into pieces, the amount thus realized by sale is known as its Salvage Value. For example, railway sleepers can be re-used as posts and even old iron rails taken out can be used as beams (girders) in a roof or shed of a building.
Scrap Value:- If a building is to be dismantled after the period of its utility is over, some amount can be fetched from the sale of old materials. The amount is known as Scrap Value of a building. If varies from 8% to 10% of the cost of construction according to the availability and utility of the material.
Book value: It is the amount shown in the account book after allowing necessary depreciation.
Book value = Original cost – Depreciation
Market value: The value of a property in an open market and it depends upon time.