Often one hears the term “scrap value” and the mind goes to how much can I get for these junk cars in Orland Park? In a sense that is correct but there is more to it than that. Scrap value is an accounting term and it relates to the depreciation of an asset and an assessment of its value at the end of the projected term of the assets usability. In business there are really only two types of purchases for plant and equipment, one is to depreciate the value of the asset over a pre determined number of years and the other is to expense the purchase. The differentiation is easy for accounts to determine as most companies have an asset register for depreciable items. In realistic terms a ream of copy paper is expensed the moment it is purchased because of its low value and its consumption. A new company car on the other hand is depreciated over a defined life of perhaps five years. After five years of straight line depreciation technically the car is worth only what the residual value is and that may be zero.
To assess the amount of the assets original cost the usefulness of the depreciated item must be assessed. If junk cars in Orland Park are willing to pay a specific amount for the car after the five year period of depreciation then this amount is deducted from the original purchase price and then depreciated. Simple calculation would be, purchase price $40,000, junk cars in Orland Park offer after five years $20,000 then the difference of $20,000 is dived by five years and the per year depreciation is $4,000. There will be equipment that at the end of its predicted life is of no value on the used market and will simply be of scrap value. There will also be equipment which will have some value as second hand goods that can readily be disposed of. All of these calculations, be it straight line or accelerated depreciation are all very important for a company’s balance sheet, P&L and tax computations.
Scrap value of junk cars in Orland Park is also used for purposes of insurance, home contents and automobiles in particular. If a car is in a collision and the insurance company decides to write it off they assign a value to it, notably the current market price based on the age and condition prior to the accident minus the scrap value. It allows the owner to sell the wreck to whom he wants at whatever price he can get.
Scrap value to an auto wrecker is the amount of money he can get by selling junk cars in Orland Park by the piece or by its recycled value, usually by weight.
To dispose of junk cars in Orland Park or any other area in Chicagoland and Northern Indiana the people to call are Junk My Car USA. They give cash for cars regardless of their condition, they pick up for free and they pick up on the same day.
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