If an asset is disposed of when it is fully depreciated and has no residual value,the business does not need to make a journal entry because the book value is zero.

Name: If an asset is disposed of when it is fully depreciated and has no residual value,the business does not need to make a journal entry because the book value is zero.
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Question

Quizplus · Accepted Answer

Even if the book value is zero, a journal entry is required to remove the asset and its accumulated depreciation from the books.

If an Asset Is Disposed of When It Is Fully