Let’s say I bought a car for $50,000, with a 15% depreciation rate and a salvage value of $10,000. I want to use the fixed assets option in the system; how do I record the salvage value?
You don’t record the salvage value until you dispose of the car
You depreciate the car until it reaches the salvage value and then stop depreciating
What depreciation method are using- 15% straight line or 15% on balance?
In the first case, it will take 5 years and 4 months to arrive at the salvage value ( 7,500 depreciation every year)
In the second case it will take 10 years
Are you sure about the salvage value - it seems very high