What is the salvage value of an asset?

The correct answer is option 2- The value which is realisable at the end of its useful life.

The salvage value of an asset is the value, which is realisable at the end of its useful life.

Salvage value, also known as residual value or scrap value, is the estimated amount that an asset will be worth after its useful life is over and it is no longer in active use for the business. This value is important in accounting and financial planning because it affects how the cost of an asset is spread out over time using depreciation.