Brandy Enterprises discarded a computer that was fully depreciated and had no residual value. As a result of this transaction, Brandy will _________.

Question

Quizplus · Accepted Answer

When an asset that has been fully depreciated and has no residual value is discarded, the best choice is to zero out the asset and accumulated depreciation accounts. This means debiting the Accumulated Depreciation - Computer account and crediting the Computer account for the full amount of the cost of the asset. This eliminates the need for a loss or gain on disposal account. Therefore, the correct answer is D.

Brandy Enterprises Discarded a Computer That Was Fully Depreciated and Had