what is salvage value vs book value 
book value is the historical cost of an asset less the accumulated depreciation booked for that asset to date this amount is carried on a company s financial statement under noncurrent assets on the other hand salvage value is an appraised estimate used to factor how much depreciation to calculate it s a guess on how much the company can get for the asset at the end of its life and this value though helpful to determine components of a financial statement isn t actually reported on a company s financial statement the bottom linesalvage value is the amount a company can expect to receive for an asset at the end of the asset s useful life a company uses salvage value to estimate and calculate depreciate as salvage value is deducted from the asset s original cost a company can also use salvage value to anticipate cashflow and expected future proceeds 