If Disposal of an Asset Occurs During the Year, Depreciation

question 117

Multiple Choice

If disposal of an asset occurs during the year, depreciation is

• A)not recorded for the year.
• B)recorded for the whole year.
• C)recorded for the fraction of the year to the date of the disposal.
• D)not recorded if the asset is scrapped.

Comprehend the evaluation of ending inventory under different scenarios.

Apply cost flow assumptions in determining cost of goods sold.

Understand how payment terms and purchase discounts affect journal entries under the gross method.

Recognize the effects of LIFO liquidation on pre-tax income.

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