When a Company Discards Machinery That Is Fully Depreciated, This

question 74

Multiple Choice

When a company discards machinery that is fully depreciated, this transaction have which of the following effect on the company's accounts?

• A) decrease Accumulated Depreciation; decrease Machinery
• B) increase Machinery; increase Accumulated Depreciation
• C) increase Cash; increase Accumulated Depreciation
• D) increase Depreciation Expense; increase Accumulated Depreciation

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Definitions:

Political Stability

The degree to which a government is free from turmoil or sudden change, contributing to a predictable economic environment.

Property Rights

Legal rights over the use, control, and benefits of ownership of property, including intangible and tangible assets.

Living Standards

The level of wealth, comfort, materials, and necessities available to a certain socioeconomic class in a certain geographic area.

Political Stability

The condition of a nation or government that is not likely to experience significant changes, upheaval, or violence.