Albatross Services scrapped a van.The van originally cost $40 000,had an estimated residual value of zero and an estimated life of 10 years.At the time it was scrapped,it was fully depreciated.What was the effect of scrapping the van?

Question

Quizplus · Accepted Answer

Since the van was fully depreciated and had no residual value, there was no book value left on the asset. Scrapping the van would not result in a gain or loss.

Albatross Services Scrapped a Van