If a Fully Depreciated Asset with No Residual Value Is

question 273

Multiple Choice

If a fully depreciated asset with no residual value is "retired" to a junk yard without receiving any cash:

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

Purpose

The reason for which something is done or created, or for which something exists; intent or objective.

Instrument

A legal document formalizing an agreement or right, such as contracts, wills, or deeds.

Conditional Order

Refers to an order in a legal or financial context that will only be executed if certain conditions are met.

Negotiable Instrument

A financial document, such as a check or promissory note, that contains a promise to pay a specific amount of money to the bearer or assignee, which can be transferred by endorsement or delivery.