Business Math technicalities

[Stick]

So I've come across two unusual questions today and I need to confirm the following:

1. When an item reaches its scrap value, do we assume the owner sells it at that price?

2. If an investor starts making regular investment instalments and a principal value is not stated, is the principal value 0 or the payment value?

[bucklr]

For number one: that's an accounting question. When a non current asset reaches its scrap value it's at the end of its life in the business. Very technically speaking the asset is sold and the amount is either above or below the scrap value... This results in a profit or loss on the disposal.

It's an acccounting question so I wouldn't worry.