When a company discards machinery that is fully depreciated, this transaction will be recorded with which of the following entries?
A) DR Accumulated depreciation
CR Machinery
B) DR Machinery
CR Accumulated depreciation
C) DR Cash
CR Accumulated depreciation
D) DR Depreciation expense
CR Accumulated depreciation

Question

Quizplus · Accepted Answer

When machinery is fully depreciated and discarded, the accumulated depreciation account is debited to remove the depreciation, and the machinery account is credited to remove the asset from the books.

When a Company Discards Machinery That Is Fully Depreciated, This