Depreciation is not recognised if an asset's residual value exceeds its carrying amount.

Name: Depreciation is not recognised if an asset's residual value exceeds its carrying amount.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Depreciation is not recognized if an asset's residual value exceeds its carrying amount because this means that the asset has already been fully depreciated to a zero carrying amount, and its remaining value is equal to or greater than its expected salvage value.

Depreciation Is Not Recognised If an Asset's Residual Value Exceeds