Which of the Following Is a Correct Statement Regarding the Disposal

question 58

Multiple Choice

Which of the following is a correct statement regarding the disposal of an asset for no proceeds?

• A) The cost of the asset, but not its accumulated depreciation, must be removed from the books.
• B) If the asset is not fully depreciated, a gain on the disposal can occur.
• C) If the asset is fully depreciated, the journal entry to record the disposal will decrease net assets.
• D) If the asset is fully depreciated, there will be no gain or loss on the disposal.

---

Definitions:

Plate Boundaries

The edges where two tectonic plates meet, characterized by geological activities such as earthquakes and volcanic eruptions.

Fault

a crack in the Earth's crust resulting from the displacement of one side with respect to the other.

Subsiding

The process of sinking or settling of the Earth's surface, often due to natural geological processes or extraction of underground resources.

Formation

The process of creating something, whether geological like rock formations, or formation in general, implying an act of coming into existence.