If a Plant Asset Is Retired and Is Fully Depreciated

question 212

Multiple Choice

If a plant asset is retired and is fully depreciated,

• A)a gain on disposal will be recorded.
• B)phantom depreciation must be taken as though the asset were still on the books.
• C)a loss on disposal will be recorded.
• D)no gain or loss on disposal will be recorded.

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Definitions:

Intrinsic Value

Intrinsic Value is the actual value of a company, stock, currency, or product determined through fundamental analysis without reference to its market value.

FCFE

Free Cash Flow to Equity, a measure of how much cash is available to the equity shareholders of a company after all expenses, reinvestment, and debt payments have been made.

Intrinsic Value

The actual, fundamental value of an asset, determined through analysis of fundamentals, without considering market value influences.

FCFE

Free Cash Flow to Equity, a measure of how much cash is available to the equity shareholders of a company after all expenses, reinvestment, and debt are paid.