A plant asset is said to be fully depreciated when the book value is:

Question

Quizplus · Accepted Answer

The book value of a fully depreciated asset is equal to its residual value. The residual value is the estimated value of the asset at the end of its useful life, and it is typically assumed to be a small amount. Once the book value of the asset reaches the residual value, it is considered fully depreciated. Therefore, option C is the correct answer. Option A and B are incorrect because they imply that the asset still has some value, while option D is incorrect because the market value of an asset may be different from its book value.

A Plant Asset Is Said to Be Fully Depreciated When