If Fully Depreciated Equipment That Cost $10000 with No Salvage

question 12

Short Answer

If fully depreciated equipment that cost $10000 with no salvage value is retired the entry to record the retirement requires a debit to the ___________________________ account and a credit to the _____________________ account.

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Definitions:

Fixed Manufacturing Costs

Costs that do not vary with the level of production output, such as rent, salaries, and insurance.

Net Income

The amount by which revenues exceed expenses.

Incremental Analysis

The process of identifying the financial data that change under alternative courses of action, often used in decision-making situations where costs and benefits need to be evaluated.

Costs and Revenues

The expenses incurred and the income earned by a business during a specific period, influencing profitability.