Which of the following is correct for a fully depreciated asset?
A) Market value is zero.
B) Market value is greater than book value.
C) Book value is greater than market value.
D)The relationship between market and book values is indeterminable.

Question

Quizplus · Accepted Answer

A fully depreciated asset has a book value of zero because its cost has been fully allocated to depreciation expense over its useful life. However, this does not necessarily mean its market value is zero. The market value can vary based on demand, condition, and other factors, making the relationship between market and book values indeterminable without further information.

Which of the Following Is Correct for a Fully Depreciated