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, the book value equals the residual value, resulting in no gain or loss on disposal.

If an Asset Is Fully Depreciated and Retired for Proceeds