Brandy Enterprises Discarded a Computer That Was Fully Depreciated and Had

question 90

Multiple Choice

Brandy Enterprises discarded a computer that was fully depreciated and had no residual value.As a result of this transaction,Brandy will ________.

• A) report a loss equal to the historical cost of the computer
• B) Debit the Computer account and credit the Accumulated Depreciation - Computer account
• C) Debit the Accumulated Depreciation - Computer account; debit Loss on Disposal of Computer account, and credit the Computer account
• D) zero out the Computer and Accumulated Depreciation - Computer accounts

---

Definitions:

Reluctant

Showing hesitation or unwillingness to do something.

Hedging

A financial strategy used to reduce or limit the risk of price movements in commodities, currencies, or securities, by taking an offsetting position in a related security.

Currency Exchange

The process of exchanging one country's currency for another, affecting international trade and investments due to fluctuating exchange rates.

Price Risks

The uncertainty and potential financial loss associated with changes in the price of goods, services, or commodities.