When an Asset Is Fully Depreciated, the Carrying Amount of the Asset

question 243

Multiple Choice

When an asset is fully depreciated, the carrying amount of the asset will be

• A) nil.
• B) equal to the trade-in value.
• C) equal to the residual.
• D) equal to the fair value.

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Definitions:

Consolidated SCI

Refers to the consolidated statement of comprehensive income which combines all financial activities of a parent company and its subsidiaries.

Calculate Exchange Gain/Loss

The process of determining the profit or loss from foreign exchange transactions, based on changes in exchange rates.

Monetary Items

Financial elements that are fixed or determinable in terms of money and do not change in value over time, such as cash and receivables.

Temporal Method

An accounting method used to convert the financial statements of a foreign subsidiary, using exchange rates based on the time assets and liabilities were acquired.