Which of the following is a correct statement regarding the disposal of an asset for no proceeds?
A) The cost of the asset, but not its accumulated depreciation, must be removed from the books.
B) If the asset is not fully depreciated, a gain on the disposal can occur.
C) If the asset is fully depreciated, the journal entry to record the disposal will decrease net assets.
D) If the asset is fully depreciated, there will be no gain or loss on the disposal.

Question

Quizplus · Accepted Answer

If an asset is fully depreciated, its book value is zero, so disposing of it for no proceeds results in no gain or loss.

Which of the Following Is a Correct Statement Regarding the Disposal