When can the book value of an asset on a corporation s balance sheet exceed the

Question

When can the book value of an asset on a corporation s balance sheet exceed the market value of that asset?

A. When the corporation has fully depreciated the asset for tax purposes.

B. Only when the company first purchased it.

C. When an independent third party (including publicly available data. has verified the true market value.

D. When using accelerated depreciation methods.

E. never.

A. When the corporation has fully depreciated the asset for tax purposes.

B. Only when the company first purchased it.

C. When an independent third party (including publicly available data. has verified the true market value.

D. When using accelerated depreciation methods.

E. never.

Explanation / Answer

D. When using accelerated depreciation methods.

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