A company purchased a machine for $100,000.The accumulated depreciation on the machine is now $100,000.Which of the following statements is TRUE regarding the disposal of the machine for no cash proceeds?
A) The cost of the asset,but not its accumulated depreciation,must be removed from the books.
B) A gain or loss on the disposal can occur.
C) The journal entry to record the disposal will decrease net assets.
D) There will be no gain or loss on the disposal.
Correct Answer:
Verified
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