When a company discards machinery that is fully depreciated,how would this transaction affect the company's accounts?
A)Decrease Accumulated Depreciation;decrease Machinery
B)Increase Machinery;increase Accumulated Depreciation
C)Increase Cash;increase Accumulated Depreciation
D)Increase Depreciation Expense;increase Accumulated Depreciation

Question

Quizplus · Accepted Answer

When a company discards machinery that is fully depreciated, it means that the accumulated depreciation on the machinery is equal to the cost of the machinery. Therefore, discarding the machinery will result in a decrease in Accumulated Depreciation and a decrease in the value of the Machinery. This is because the cost of the machinery has already been fully allocated as depreciation expenses over the useful life of the machinery.

When a Company Discards Machinery That Is Fully Depreciated,how Would