For an asset (typically a tangible asset), it is the estimated proceeds from disposal of the asset less all relating costs- that is, all the costs incurred in the process of sale or disposal. Scrap value is not part of the depreciation basis of an asset because a disposing entity would recover this value through the actual proceeds at the time of sale.
Scrap value can be also defined as the book value of an asset less its accumulated depreciation at the end of its useful life (at a time that depreciation would have completed and useful life is zero).
This value is also known as salvage value or residual value.
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