Correct Answer - Option 4 : Scrap value
Concept:
Scrap Value:
Scrap Value is the sell value of dismantled materials of an asset at the end of its useful life. Scrap Value is counted in the calculation of depreciation of a property, generally @10% of the cost of the Structure.
Salvage value:
Salvage Value is the Estimated Value of an asset without dismantling it at the end of its useful life.
Book Value:
Book value is the amount shown in the account book after allowing necessary depreciations. The book value of a property at a particular year is the original cost minus the amount of depreciation allowed per year and will be gradually reduced year to year and at the end of the utility period of the property, the book value will be only scrap value.
Market Value:
The market value of a property is the amount that can be obtained at any particular time from the open market if the property is put for sale. The market value will differ from time to time according to demand and supply.
Rateable value:
It is the net annual letting value of a property, which is obtained after deducting the number of yearly repairs from the gross income.
Annuity:
It is the annual periodic payments for repayments of the capital amount invested by a party.
Capitalised value:
It is the amount of money whose annual interest at the highest prevailing rate of interest will be equal to the net income from the property.
