If a fully depreciated asset with no residual value is retired without receiving any cash on retirement:
A)a gain on disposal will be recorded.
B)depreciation must be recorded 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 a fully depreciated asset with no residual value is retired without receiving any cash, there will be no gain or loss on disposal recorded. This is because the asset has already been fully depreciated and has no remaining book value. Therefore, the removal of the asset from the books will not have any impact on the company's financial statements.

If a Fully Depreciated Asset with No Residual Value Is