Asked by Jenna Raney on Jul 08, 2024
Verified
If a fully depreciated plant asset is still used by a company the
A) estimated remaining useful life must be revised to calculate the correct revised depreciation.
B) asset is removed from the books.
C) accumulated depreciation account is removed from the books but the asset account remains.
D) asset and the accumulated depreciation continue to be reported on the balance sheet without adjustment until the asset is retired.
Fully Depreciated
An asset's book value is reduced to zero, through depreciation, over its useful life, reflecting that it has no remaining unallocated cost.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded for an asset since it was acquired, reducing its book value.
Remaining Useful Life
The estimated time period that an asset is expected to be functional and economically viable.
- Comprehend the effects of asset revision in useful life and salvage value on depreciation calculations.
Verified Answer
Learning Objectives
- Comprehend the effects of asset revision in useful life and salvage value on depreciation calculations.
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