When a Company Discards Machinery That Is Fully Depreciated, This

question 117

Multiple Choice

When a company discards machinery that is fully depreciated, this transaction would be recorded as a

• A) debit to Accumulated Depreciation and credit to Machinery
• B) debit to Machinery and a credit to Accumulated Depreciation
• C) debit to Cash and a credit to Accumulated Depreciation
• D) debit to Depreciation Expense and a credit Accumulated Depreciation

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Definitions:

Six-figure Accuracy

A measure of precision that implies numerical values are accurate to within plus or minus one out of a hundred thousand.

Simplify

To simplify means to make something less complex or easier to understand, often by reducing it to its basic components.

Exponent Laws

Mathematical rules governing operations involving powers, such as multiplication and division of exponents.

Simplify

To make a complex problem or equation easier to understand or solve by reducing it to its basic components.