A fully amortized asset is an asset:

Question

Quizplus · Accepted Answer

A fully amortized asset is an asset that has reached the end of its estimated useful life. This means that the cost of the asset has been fully charged to expense through the process of amortization. The book value of a fully amortized asset may still be greater than zero, and it may still have some market value, but its usefulness to the company is considered to be at an end. Option A is incorrect because the book value of an asset reaching zero does not necessarily mean that it has no market value. Option B is incorrect because an asset reaching its salvage value does not mean that it is of no further use to the company, and it may still be used beyond this point. Option D is incorrect because an asset reaching the end of its actual useful life may be different from its estimated useful life and may not necessarily be fully amortized.

A Fully Amortized Asset Is an Asset