If an Asset Becomes Fully Depreciated for Tax Purposes Before

question 50

Multiple Choice

If an asset becomes fully depreciated for tax purposes before the end of the project life, what happens to the salvage value?

• A)The salvage value is ignored in the capital budget.
• B)The salvage value is amortized further.
• C)The salvage value is discounted at the date of the disposal of the asset.
• D)The asset's life is extended.

---

Definitions:

Felt Conflict

The personal and emotional experience of conflict by individuals, encompassing feelings of tension and hostility.

Conflict Antecedents

Factors or conditions that precede and contribute to the emergence or escalation of conflict between individuals or groups.

Accommodation

The cognitive process of adjusting existing cognitive schemas, perceptions, or understanding to incorporate new information.

Cooperative

Willingness to work jointly with others towards a common goal, often characterized by mutual help and teamwork.