If a Long-Lived Asset Is Retired Before It Is Fully

question 144

Multiple Choice

If a long-lived asset is retired before it is fully depreciated, and no residual or scrap value is received,

• A) a gain on disposal will be recorded.
• B) phantom depreciation must be taken as though the asset were still on the books.
• C) a loss on disposal will be recorded.
• D) no gain or loss on disposal will be recorded.

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Definitions:

Corn

A cereal plant that yields large kernels on a cob, widely grown for food and livestock feed.

Natural Selection

The evolutionary process where organisms better adapted to their environment tend to survive and reproduce more successfully than less well-adapted organisms.

Predation

The biological interaction where one organism, the predator, kills and consumes another organism, its prey, as a food source.

Flocks

Groups of birds gathered together, typically for the purposes of migration or social interaction.