If an asset is fully depreciated and retired for proceeds equal to its residual value
A)a gain on disposal will be recorded.
B)depreciation must continue to be taken as though the asset were still on the books.
C)a loss on disposal will be recorded.
D)no gain or loss on disposal will be recorded.

Question

Quizplus · Accepted Answer

When an asset is fully depreciated and retired for proceeds equal to its residual value, it means the asset's book value equals its residual value. Selling it for the residual value means there's no difference between the sale price and the book value, resulting in no gain or loss on disposal.

If an Asset Is Fully Depreciated and Retired for Proceeds