Assuming That an Asset Has Been Fully Depreciated According to Its

question 72

Multiple Choice

Assuming that an asset has been fully depreciated according to its straight line CCA class, which of the following statements is correct concerning the value of the asset:

• A)its market value is zero.
• B)its UCC value is zero.
• C)its book value is the current market value.
• D)it has neither book value nor market value.

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Definitions:

Growing Annuity

A series of periodic payments that grow at a constant rate per period, often used to calculate the present value of future payments that increase over time.

Present Value

The immediate valuation of a prospective sum of money or sequences of cash payments, utilizing a certain return rate.

Rate of Return

A calculation that determines the percentage gain or loss on an investment relative to the investment's cost.

Years

Units of time measuring the duration of 365 days (or 366 days in a leap year), commonly used to quantify time.