Final answer:
A fully depreciated plant asset can still be reported on the balance sheet and may continue to be used in business. It can also be discarded, sold, or exchanged but is not automatically removed from accounting records unless disposed of.
Step-by-step explanation:
A fully depreciated plant asset refers to an asset that has already had its cost allocated over its useful life as determined by a company's depreciation method. Despite being fully depreciated, the asset may still be reported on the balance sheet at its residual value, if there is any, until it is disposed of. This means that the correct answer is: B. can be discarded, sold, or exchanged for another plant asset.
Once an asset is fully depreciated, it remains on the balance sheet in the asset section, reduced by its accumulated depreciation, which is a contra asset account. However, its net book value would likely be zero if it's completely depreciated with no salvage value. The asset can continue to be used in business operations, even if it is fully depreciated.