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

question 79

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 balance sheet without adjustment until the asset is retired.

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Definitions:

Long Run

A period of time in which all factors of production and costs are variable, allowing firms to adjust to market conditions.

Capital

Assets that are used in the production of goods and services, including physical assets like machinery and buildings, and intangible assets like patents and copyrights.

Plant Size

The capacity or physical extent of a manufacturing facility, often influencing its production capability and efficiency.

Capital Inputs

The long-term assets used in production, including machinery, buildings, and equipment.