When an Asset Is Fully Depreciated

question 7

Multiple Choice

When an asset is fully depreciated:

• A)the book value is zero, and the asset has no market value.
• B)the book value is equal to the salvage value, and the asset has reached the end of its estimated useful life.
• C)the depreciable cost is equal to the salvage value, and the asset is of no further use to the company.
• D)the total depreciation is equal to the accumulated depreciation, and the asset has reached the end of its actual useful life.

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Definitions:

Practical Intelligence

Often referred to as street smarts, it is the ability to solve everyday problems by utilizing knowledge gained from experience.

Street Smarts

Practical knowledge and skills needed for everyday life, emphasizing quick thinking and the ability to handle unexpected situations.

Creativity

The ability to generate novel and useful solutions to problems.

Creative People

Individuals who are able to think in novel, unusual, or inventive ways and apply creative thinking to problems and situations.