Final answer:
The carrying amount of a fully depreciated asset is typically nil, reflecting that its costs have been completely allocated to expense over its useful life. This amount does not consider the market value, trade-in value, or fair value of the asset.
Step-by-step explanation:
When an asset is fully depreciated, the carrying amount of the asset will typically be nil, assuming there is no residual value. This is because depreciation is the process of allocating the cost of an asset over its useful life, and when the asset is fully depreciated, its entire cost has been allocated. The carrying amount, also known as the book value, is the cost of the asset minus accumulated depreciation. When a company has fully depreciated an asset, it means that the asset's costs have been entirely allocated to expense over its useful life, equating the carrying amount to zero, unless a residual value is considered. However, the carrying amount does not necessarily reflect the asset's market value, trade-in value, or fair value.