If disposal of a long-lived asset occurs during the year, depreciation is
A) not recorded for the year.
B) recorded for the whole year.
C) recorded for the fraction of the year to the date of the disposal.
D) not recorded if the asset is scrapped.

Question

Quizplus · Accepted Answer

Depreciation is recorded for the part of the year that the asset was in use, up until the date it was disposed of. This accounts for the asset's expense over its period of use in that year.

If Disposal of a Long-Lived Asset Occurs During the Year