After an asset is fully depreciated, the asset:
A)must be removed from the Balance Sheet.
B)remains on the Balance Sheet at a value of $0.
C)remains on the Balance Sheet at (cost - Accumulated Depreciation).
D)remains on the Balance Sheet at cost.

Question

Quizplus · Accepted Answer

When an asset is fully depreciated, it still remains on the balance sheet but its value will be the original cost minus accumulated depreciation. This reflects the fact that the asset was used up over time and has no remaining value on the balance sheet. Option A is incorrect because removing the asset from the balance sheet is not necessary or appropriate. Option B is incorrect because it implies that the asset has no value, which is not accurate. Option D is incorrect because it does not reflect the fact that the asset has been fully depreciated.

After an Asset Is Fully Depreciated, the Asset