If a Computer with a Fully Depreciated Cost of $10

question 49

Multiple Choice

If a computer with a fully depreciated cost of $10 000 is discarded as worthless, the correct accounting entry to record the scrapping is:

• A) DR Expense on disposal of asset $10 000; CR Computer $10 000
• B) DR Accumulated depreciation computer $10 000; CR Computer $10 000
• C) DR Expense on disposal of asset $10 000; CR Accumulated depreciation computer $10 000
• D) DR Expense on disposal of asset $10 000; CR Proceeds of disposal of asset $10 000

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Definitions:

Dealer Appliance Outlet

A retailer specializing in the sale of appliances, typically offering products from various manufacturers.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed to be enforceable, including those for the sale of land or goods above a certain value.

Usage of Trade

Established customs and practices in a particular industry or market that are widely accepted and used by parties in commercial transactions.

Baker's Dozen

A quantity of thirteen, traditionally used to ensure buyers received good value, originating from bakers adding an extra item to a dozen.