The Accumulated Depreciation at the Date of Sale of a Non-Current

question 1

Multiple Choice

The accumulated depreciation at the date of sale of a non-current asset is £25,600. What is the correct double entry to record the removal of this accumulated depreciation on the disposal of the non-current asset in the books of account of an organisation?

• A) Debit depreciation expense £25,600, Credit accumulated depreciation £25,600.
• B) Debit accumulated depreciation £25,600, Credit non-current asset disposals account £25,600.
• C) Debit non-current asset disposals account £25,600, Credit accumulated depreciation £25,600.
• D) Debit accumulated depreciation £25,600, Credit depreciation expense £25,600.

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Definitions:

Willful Malicious

Refers to actions taken with the intent to harm or with deliberate disregard of lawful considerations.

Bankruptcy Estate

The collective pool of assets that is formed upon the filing of bankruptcy, which will be used to pay off creditors.

Domestic-support Obligations

Legal responsibilities related to the financial support of one's household, including child support or alimony payments.

Discharged

Refers to the release or termination of a legal duty, debt, or obligation.