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.

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Definitions:

Due Process Clause

Constitutional guarantees that provide individuals the right to fair governmental procedures and trials.

Double Jeopardy Clause

A provision of the Fifth Amendment to the U.S. Constitution that protects individuals from being tried twice for the same offense in the same jurisdiction.

Gideon's Rule

A legal principle stemming from Gideon v. Wainwright (1963) that guarantees the right to free legal representation for defendants in criminal cases who cannot afford an attorney.

Fourteenth Amendment

An amendment to the U.S. Constitution, ratified in 1868, that guarantees equal protection under the law to all citizens.