Thread: Residual Value??? Help!!

Hi im stuck with this,

if a building cost 250,000
has a straightling depreciation rate of 2.5% per year

What is the residual value? How do i work it out?

Originally Posted by Lucy1

Hi im stuck with this,

if a building cost 250,000
has a straightling depreciation rate of 2.5% per year

What is the residual value? How do i work it out?

I believe residual value is salvage value. You did not specify your term of the asset. When you get that, go here:

Straight Line Depreciation Method

Solve for Salvage value. Asset is 250000. Depreciation Charge is (250000)(.025) = 6250. All you need is n, and you are ready to go.