If a computer with a fully depreciated cost of $30 000 is discarded as worthless,the accounting entry to record the scrapping is:

Question

Quizplus · Accepted Answer

When an asset is fully depreciated and is discarded as worthless, it is removed from the balance sheet by crediting the asset account and debiting the accumulated depreciation account. Therefore, the accounting entry to record the scrapping of a fully depreciated computer would be to debit accumulated depreciation computer for $30,000 and credit computer for $30,000. There is no need to record an expense on the disposal of the asset, as the asset has already been fully depreciated and its original cost has been expensed over its useful life.

If a Computer with a Fully Depreciated Cost of $30