If a fully amortized asset with no residual value is retired without receiving any cash on retirement:
A)a gain on disposal will be recorded.
B)amortization must be recorded as though the asset were still on the books.
C)a loss on disposal will be recorded.
D)no gain or loss on disposal will be recorded.

Question

Quizplus · Accepted Answer

Since the asset is fully amortized and has no residual value, its book value is zero. Therefore, retiring it without receiving any cash results in no gain or loss.

If a Fully Amortized Asset with No Residual Value Is