If an asset becomes fully depreciated for tax purposes before the end of the project life, what happens to the salvage value?

Question

Quizplus · Accepted Answer

The salvage value is considered at the time of disposal and is typically discounted back to present value if analyzing the investment from a present value perspective. This accounts for the remaining value of the asset at the end of its useful life or project life, even if it has been fully depreciated for tax purposes.

If an Asset Becomes Fully Depreciated for Tax Purposes Before