Can the accumulated depreciation of a depreciable asset be greater than an assets cost when it is fully depreciated and still in use?
A)Yes - as it is still in use it continues to be depreciated.
B)No - although it is still in use it does not continue to be depreciated.
C)No - because the asset is considered retired even though it is still in use.
D)Yes - as the asset is retired and then reinstated on the books to be depreciated for its continued use.

Question

Quizplus · Accepted Answer

Accumulated depreciation cannot exceed the asset's initial cost, even if the asset is still in use. Depreciation stops when the asset's book value equals its salvage value or when it is fully depreciated, regardless of its continued use.

Can the Accumulated Depreciation of a Depreciable Asset Be Greater