Assuming that an asset has been fully depreciated according to its straight line CCA class, which of the following statements is correct concerning the value of the asset:
A)its market value is zero.
B)its UCC value is zero.
C)its book value is the current market value.
D)it has neither book value nor market value.

Question

Quizplus · Accepted Answer

When an asset is fully depreciated according to its straight line CCA class, its UCC (Undepreciated Capital Cost) value will be zero. This means that the asset has been completely expensed for tax purposes and there is no remaining value left to claim as CCA. However, the asset may still have a market value or book value (if it is still being used by the company and has not been sold). So options A, C, and D are incorrect.

Assuming That an Asset Has Been Fully Depreciated According to Its