What is the value of rescue?
The value of the rescue refers to the estimated value of the asset after the owner has provided as much use. The calculation of this value usually involves allowing the depreciation of the asset for a longer period of time. With regard to the accumulated depreciation, it allows to determine the sale price of the asset, which allows the owner to obtain the last piece of value before the investment is divided.
The actual calculation of rescue value usually begins with the purchase price of the asset. Using a projection of the expected service life of the item, it is possible to determine the amount of depreciation that can be used on an asset for each year of this useful service life. This may be somewhat complicated, especially with assets that are expected to have a slower pace for the undergrowth of depreciation in the first year for the rest of your life. With direct access to depression, the asset will reduce the value as a specified pace for the entire life, and eventually there is a value of rescue at the end of this life.
knowledge of rescue value is important in several scenarios. For example, if an individual buys a new vehicle for $ 20,000 in the US (USD) and decides to sell the vehicle after five years, determination of the exact rescue value will allow the owner to determine a reasonable selling price for a used car or truck. By allowing the owner to have any extent to be depreciated during each of these five years, the owner has a good idea of how much he can get back from the original investment in terms of cash. Ideally, the value of rescue will be sufficient to provide reserve sources for a new vehicle, allowing the older vehicle to provide the original owner's last advantage.
The value of rescue activation also important in terms of claiming tax deductions on donated items. For example, if the owner decides to donate a used vehicle for charity for five years, the estimated rescue value determines how much tax deduction could claim to the donation date.In many cases, specific formulas are used to determine the value of rescue, effectively prevent owners from donating assets, and then showed an inflated market value as a means of receiving a greater deduction.