If an Asset Is Fully Depreciated and Retired for Proceeds

question 136

Multiple Choice

If an asset is fully depreciated and retired for proceeds equal to its residual value

• A)a gain on disposal will be recorded.
• B)depreciation must continue to 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:

Money Damages

Compensation awarded to a party in a lawsuit for losses or injuries suffered due to the other party's actions or negligence.

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than simply paying damages for failing to do so.

Hadley v. Baxendale

A landmark English court decision from 1854 that established the principle for determining damages in breach-of-contract cases, emphasizing foreseeability of damages.

Restitution

A legal principle requiring a party who has unlawfully benefited at the expense of another to compensate the aggrieved party.