Which of the following statements about the end of an asset's life is not correct?
A) At the end of an asset's life, its book value should equal its residual value.
B) At the end of an asset's life, the Accumulated Depreciation should equal the depreciable cost.
C) At the end of an assets life, the book value would equal zero if there is no residual value.
D) Assets are not to be depreciated below residual value unless the double-declining balance method is used.

Question

Quizplus · Accepted Answer

Assets can be depreciated below residual value using methods other than double-declining balance. It is not a requirement to stop depreciating once the asset's book value reaches residual value.

Which of the Following Statements About the End of an Asset's