If assets are scrapped before being fully depreciated,there is a loss equal to the carrying amount of the asset.

Name: If assets are scrapped before being fully depreciated,there is a loss equal to the carrying amount of the asset.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When an asset is scrapped before being fully depreciated, the carrying amount of the asset (i.e. its cost minus accumulated depreciation) exceeds its salvage value, resulting in a loss for the company. Therefore, the statement is true.

If Assets Are Scrapped Before Being Fully Depreciated,there Is a Loss