Assuming That an Asset Has Been Fully Depreciated According to Its

question 100

Multiple Choice

Assuming that an asset has been fully depreciated according to its MACRS class life,which of the following statements is correct concerning the value of the asset?

• A) Its market value is zero.
• B) Its book 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:

Multiplier

In economics, a factor that quantifies how an initial change in one economic variable (such as investment) will affect changes in other variables, like total output.

MPC

Marginal Propensity to Consume, a measure that describes the proportion of an increase in income that gets spent on consumption rather than being saved.

Federal Budget Deficit

The financial situation in which the federal government's expenditures exceed its revenues in a given fiscal year.

National Debt

The total amount of money that a country's government has borrowed.