If Disposal of an Asset Occurs During the Year, Depreciation

question 51

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.

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Definitions:

Earning Capacity

An individual's potential or ability to generate income from employment or other means, often considered in legal contexts relating to compensation for loss or injury.

Breach

The violation or non-fulfillment of a legal obligation, agreement, or duty.

Statute of Frauds

A legal concept that requires certain types of contracts to be written and signed by the party or parties to be charged, in order to be legally enforceable.

Oral Contract

An agreement between parties that is spoken rather than written but is still legally binding.