Which of the Following Statements Is Not True When a Fully

question 34

Multiple Choice

Which of the following statements is not true when a fully depreciated plant asset is retired?

• A)The plant asset's book value is equal to its estimated salvage value.
• B)The Accumulated Depreciation account is debited.
• C)The asset account is credited.
• D)The plant asset's original cost equals its book value.

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Definitions:

Tax Rate

The tax rate is the percentage at which an individual or corporation is taxed, determining how much tax needs to be paid on various income levels or economic activities.

Gain on Bargain Purchase

The financial gain recognized when a company acquires an asset for less than its fair value.

Non-Controlling Interest

This is an equity interest in a subsidiary not owned by the parent company, which has a claim on the subsidiary's earning and assets.

Business Combination

A transaction or event in which a company acquires control over one or more businesses, often through acquisition or merger.