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:

Narrows

A geographical feature where a body of water is constricted between two landforms.

Bedridden

A state in which a person is unable to rise from bed due to illness or disability.

Eccentric Tension

A type of muscle contraction where the muscle elongates while under tension, often engaged during the lowering phase of a lift.

Isotonic Contraction

A type of muscle contraction in which the muscle changes length while the tension remains constant, typically involved in lifting and moving objects.