It is appropriate to stop recording depreciation expense when the asset's
A) depreciable cost is less than its fair value.
B) carrying amount exceeds its fair value.
C) carrying amount equals its residual value.
D) residual value equals total accumulated depreciation.

Question

Quizplus · Accepted Answer

Depreciation expense should be stopped when the asset's carrying amount equals its residual value, as the asset has been depreciated down to its estimated salvage value, and no further depreciation is necessary.

It Is Appropriate to Stop Recording Depreciation Expense When the Asset's