Albatross Services scrapped a van.The van originally cost $40,000,had an estimated salvage 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 had already been fully depreciated, there would be no further gain or loss experienced by scrapping it. The cost of the van had already been expensed through depreciation over its estimated 10-year life. Therefore, the scrapping of the van would have no effect on the company's financial statements.

Albatross Services Scrapped a Van