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.

---

Definitions:

Organization's Objectives

The specific goals set by a business or organization to guide its operations and strategic direction.

Developing

The act of growing, enhancing, or improving something, often applied in contexts such as software development, business strategies, or personal skills.

Planning

The method of establishing objectives, formulating plans, and defining activities and timelines to achieve these objectives.

Expected Results

Expected results describe the anticipated outcomes or performance of a project, plan, or investment, based on projections or prior experiences.