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# Scrap value of a property may be __________.a)Both negative or positiveb)Constantc)Negatived)PositiveCorrect answer is option 'A'. Can you explain this answer?

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 Learners World Jul 27, 2021
Scrap value is the value of dismantled material. Let's take an ln example of building, for a building when the life is over at the end of utility period, the dismantled materials such as steel, bricks, timber, etc. will fetch a certain amount which is the scrap value of the building, the amount of scrap value maybe about 10% of its total cost of construction. If the cost of dismantling the property is more than the value of scrap obtained from it, scrap value is negative.

Scrap value is the value of dismantled material. Let's take an ln example of building, for a building when the life is over at the end of utility period, the dismantled materials such as steel, bricks, timber, etc. will fetch a certain amount which is the scrap value of the building, the amount of scrap value maybe about 10% of its total cost of construction. If the cost of dismantling the property is more than the value of scrap obtained from it, scrap value is negative.

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