Investment Language 101 Series: TERM OF THE DAY: -- 'Salvage Value' | E.9 | Trading Candle Cheat Sheet Incl. Each Episode.
A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.
It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.
It is specifically designed this way to keep it short and simple.
People can then search out extra info if they wish.
I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.
TERM OF THE DAY:
What is....
Salvage Value?
--
Salvage value is the estimated value that the owner is paid when the item is sold at the end of its useful life.
The value is used to determine annual depreciation in the accounting records, and salvage value is used to calculate depreciation expense on the tax return. The value is based on an estimate of the asset's value, or the value can be determined by a regulatory body, such as the U.S. Internal Revenue Service (IRS).
--
Breaking Down...
'Salvage Value'
--
The salvage value is used in conjunction with the purchase price and a specific accounting method to determine the amount of annual depreciation on the asset.
1/ A business owner can choose the straight-line depreciation method, which means that an equal amount of depreciation is recognized each year.
2/ If, instead, the owner chooses an accelerated method of depreciation, the company recognizes more depreciation in the early years and less in the later years of the asset's useful life.
How Straight-Line Depreciation Works
--
Assume, for example, that a company buys a machine at a cost of $5,000, and that the machine has a salvage value of $1,000 and a useful life of five years. Based on these assumptions, the annual depreciation using the straight-line method is: ($5,000 cost - $1,000 salvage value) / 5 years, or $800 per year. The asset's depreciable base is the cost less salvage value, or $4,000. Salvage value is subtracted from the cost of the asset in the depreciation calculation, because the owner sells the asset once the depreciated value declines to the salvage value.
Factoring in Accelerated Deprecation Methods
--
Accelerated depreciation means that the asset's depreciation is greater in the early years of the useful life and a smaller amount in later years.
One popular method is the double-declining balance (DDB) method, which uses a depreciation rate that is twice is straight-line percentage. In the machine example, the rate of annual depreciation is ($800 annual depreciation / $4,000 depreciable base), or 20%. The DDB method calculates the first year of depreciation on the machine as ($5,000 machine cost X 40%), of $2,000. Because DDB uses a rate that is twice as large as the straight-line rate, more depreciation is recognized in the early years of the asset's useful life.
Trading Candle Cheat Sheet:
--
Friend of the People -- Enemy of the State.
--
I am leaving these images I made here until I figure out one that fits properly and looks right for the first/main image for the post/series.
--
Since Steemit dev's changed the size of the picture frame that shows, it has honestly been a real problem getting images to match the screen, it was perfectly fine months ago before they messed around with it.
SMH.
Thanks for reading, have a nice day.
PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/
If you liked this blog post - please Resteem it and share good content with others!
--
Some of my recent blogs:
--
https://steemit.com/funny/@barrydutton/life-in-crypto-is-like-17-how-to-chart-the-crypto
https://steemit.com/cryptocurrency/@barrydutton/cryptocurrency-on-hodl-what-are-you-hodl-g-today-2
Most Images: Gif's - via Giphy.com , Funny or Die.com / Pixabay. Today:
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.
It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.
It is specifically designed this way to keep it short and simple.
People can then search out extra info if they wish.
I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.
TERM OF THE DAY:
What is....
Salvage Value?
--
Salvage value is the estimated value that the owner is paid when the item is sold at the end of its useful life.
The value is used to determine annual depreciation in the accounting records, and salvage value is used to calculate depreciation expense on the tax return. The value is based on an estimate of the asset's value, or the value can be determined by a regulatory body, such as the U.S. Internal Revenue Service (IRS).
--
Breaking Down...
'Salvage Value'
--
The salvage value is used in conjunction with the purchase price and a specific accounting method to determine the amount of annual depreciation on the asset.
1/ A business owner can choose the straight-line depreciation method, which means that an equal amount of depreciation is recognized each year.
2/ If, instead, the owner chooses an accelerated method of depreciation, the company recognizes more depreciation in the early years and less in the later years of the asset's useful life.
How Straight-Line Depreciation Works
--
Assume, for example, that a company buys a machine at a cost of $5,000, and that the machine has a salvage value of $1,000 and a useful life of five years. Based on these assumptions, the annual depreciation using the straight-line method is: ($5,000 cost - $1,000 salvage value) / 5 years, or $800 per year. The asset's depreciable base is the cost less salvage value, or $4,000. Salvage value is subtracted from the cost of the asset in the depreciation calculation, because the owner sells the asset once the depreciated value declines to the salvage value.
Factoring in Accelerated Deprecation Methods
--
Accelerated depreciation means that the asset's depreciation is greater in the early years of the useful life and a smaller amount in later years.
One popular method is the double-declining balance (DDB) method, which uses a depreciation rate that is twice is straight-line percentage. In the machine example, the rate of annual depreciation is ($800 annual depreciation / $4,000 depreciable base), or 20%. The DDB method calculates the first year of depreciation on the machine as ($5,000 machine cost X 40%), of $2,000. Because DDB uses a rate that is twice as large as the straight-line rate, more depreciation is recognized in the early years of the asset's useful life.
Trading Candle Cheat Sheet:
--
Friend of the People -- Enemy of the State.
--
I am leaving these images I made here until I figure out one that fits properly and looks right for the first/main image for the post/series.
--
Since Steemit dev's changed the size of the picture frame that shows, it has honestly been a real problem getting images to match the screen, it was perfectly fine months ago before they messed around with it.
SMH.
Thanks for reading, have a nice day.
PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/
If you liked this blog post - please Resteem it and share good content with others!
--
Some of my recent blogs:
--
https://steemit.com/funny/@barrydutton/life-in-crypto-is-like-17-how-to-chart-the-crypto
https://steemit.com/cryptocurrency/@barrydutton/cryptocurrency-on-hodl-what-are-you-hodl-g-today-2
Most Images: Gif's - via Giphy.com , Funny or Die.com / Pixabay. Today:
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
@songsina
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Don't warry... we dont mined.........
Love you r post...
Go ahead @barrydutton
Luarbiasa sungguh persentasi dan paparan yang sangat bagus.. Terima kasih @barrydutton. Posting seperti ini yang saya inginkan untuk patokan stiap langkah yang diambil untuk mencapai hasil maksimal.. Lanjutkan karya anda.
Owo beautiful article
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