If a fully depreciated long-lived asset is still used by a company, the
A) estimated remaining useful life must be revised to calculate the correct revised depreciation.
B) asset is removed from the books.
C) accumulated depreciation account is removed from the books but the asset account remains.
D) asset and the accumulated depreciation continue to be reported on the balance sheet without adjustment until the asset is retired.

Question

Quizplus · Accepted Answer

When a fully depreciated long-lived asset is still in use, it and its accumulated depreciation continue to be reported on the balance sheet without further adjustment until the asset is retired. This is because the asset has already been depreciated to its salvage value, and no further depreciation expense is recognized.

If a Fully Depreciated Long-Lived Asset Is Still Used by a Company