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Understanding Salvage Value in Financial Planning
For instance, stricter environmental regulations could diminish the salvage value of older industrial equipment that fails to meet updated standards. Explore how salvage value influences financial planning, affecting depreciation, financial statements, and investment decisions. The salvage or the scrap value is estimated when the useful life...
Adjusting Entry for Prepaid Expense
Take note that the amount has not yet been incurred, thus it is proper to record it as an asset. Expenses are recognized when they are incurred regardless adjusting journal entry for prepaid insurance of when paid. Expenses are considered incurred when...