If an asset is scrapped before being fully depreciated:
A) the company will incur a loss on the disposal.
B) the equipment account will be credited.
C) the accumulated depreciation account will be debited.
D) all of the above will occur.

Question

Quizplus · Accepted Answer

If an asset is scrapped before being fully depreciated, the company will incur a loss on the disposal (A). The equipment account will be credited (B), and the accumulated depreciation account will be debited (C). Therefore, all of the above choices will occur (D).

If an Asset Is Scrapped Before Being Fully Depreciated