Which of the Following Is Correct for a Fully Depreciated

question 52

Multiple Choice

Which of the following is correct for a fully depreciated asset?

• A) Market value is zero.
• B) Market value is greater than book value.
• C) Book value is greater than market value.
• D)The relationship between market and book values is indeterminable.

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Definitions:

Present Value

The present value of a future amount of money or series of cash flows, considering a certain interest rate.

Semiannually

Semiannually means occurring twice a year, typically at six-month intervals.

Discounted

A financial term referring to an instrument, transaction, or cash flow that is valued in present terms, taking into account the time value of money.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in the evaluation of investment opportunities.