If a Fully Depreciated Asset with No Residual Value Is

question 90

Multiple Choice

If a fully depreciated asset with no residual value is retired without receiving any cash on retirement:

• 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:

Dividends In Arrears

Dividends on preferred stock that have not been paid in the period they are due but are still owed to shareholders.

Cumulative

Refers to the total amount accumulated over a period of time.

Common Stockholders

Individuals or entities that own shares in a corporation, giving them certain rights like voting on corporate matters.

Stated Value

A value assigned to a share of no-par stock by the company's board of directors for accounting purposes.