If a Fully Depreciated Plant Asset Is Still Used by a Company

question 114

Multiple Choice

If a fully depreciated plant 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 statement of financial position without adjustment until the asset is retired.

---

Definitions:

Pollution Credits

Allowances granted to companies, permitting them to emit a certain amount of pollutants; they can be traded among companies.

Biodiesel

A biofuel derived from natural sources, such as vegetable oils or animal fats, used as an alternative to conventional fossil fuels.

Oil Prices

are the costs associated with purchasing crude oil, which fluctuate based on global supply and demand dynamics.

Present Value

The present worth of a future amount of money or series of cash inflows using a designated return rate.