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.

Question

Quizplus · Accepted Answer

Even if a plant asset is fully depreciated, it can still be used by a company. In this case, the asset and the accumulated depreciation for the asset continue to be reported on the balance sheet without adjustment until the asset is retired. It is not necessary to revise the estimated remaining useful life or remove the accumulated depreciation account from the books.

If a Fully Depreciated Plant Asset Is Still Used by a Company