If Paulson Transport continues to use the ship in its eleventh year, what is the correct accounting procedure?
A)Take the asset off the books and record a gain on the disposal
B)Continue to depreciate it
C)The company may not use it any longer
D)No longer depreciate it but leave it on the records at its book value at the end of its useful life

Question

Quizplus · Accepted Answer

Once an asset reaches the end of its useful life, it is no longer depreciated, but it remains on the books at its residual or book value unless disposed of.

If Paulson Transport Continues to Use the Ship in Its