If a computer with a fully depreciated cost of $30 000 is discarded as worthless, the accounting entry to record the scrapping is which of the following?
A) Debit expense on disposal of asset $30 000; credit computer $30 000
B) Debit expense on disposal of asset $30 000; credit accumulated depreciation computer $30 000
C) Debit accumulated depreciation computer $30 000; credit computer $30 000
D) Debit accumulated depreciation computer $30 000; credit computer $30 000; Debit expense on disposal of asset; credit proceeds of disposal of asset $30 000

Question

Quizplus · Accepted Answer

When a fully depreciated asset is scrapped, the accounting entry should reflect the removal of the asset from the books. Since the asset has a zero carrying value at this point, the accumulated depreciation balance is used to record the loss in value. Therefore, the entry should debit accumulated depreciation for the full amount of $30,000 and credit the computer for the same amount. No expense or proceeds of disposal accounts should be used since there is no cost or value associated with the disposal of the asset.

If a Computer with a Fully Depreciated Cost of $30