When an asset is fully depreciated, the carrying amount of the asset will be
A) nil.
B) equal to the trade-in value.
C) equal to the residual.
D) equal to the fair value.

Question

Quizplus · Accepted Answer

When an asset is fully depreciated, its carrying amount (book value) equals the residual value, which is the estimated salvage value at the end of its useful life. This is the amount expected to be recovered upon disposal of the asset after all depreciation has been charged.

When an Asset Is Fully Depreciated, the Carrying Amount of the Asset