If an Asset Is Fully Depreciated,but It Can Continue to Be

question 28

True/False

If an asset is fully depreciated,but it can continue to be used,the asset account and accumulated depreciation balance remain on the books,and no further depreciation is recorded.

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Definitions:

Tax Obligations

The legal requirement for individuals or entities to pay taxes to governmental authorities according to the laws in place.

Economic Life

Refers to the length of time an asset is expected to be usable for its intended purpose or until it is more cost-effective to replace it.

Sale and Leaseback Arrangement

A financial transaction where one sells an asset and leases it back for the long term; thus, one continues to use the asset but no longer owns it.