When a fully depreciated asset with a residual value is discarded
A)a loss equal to its residual value may be recognized.
B)a gain equal to its residual value may be recognized.
C)no gain or loss may be recognized.
D)a gain for its carrying value may be recognized.

Question

Quizplus · Accepted Answer

When a fully depreciated asset with a residual value is discarded, a loss equal to its residual value may be recognized because the asset's book value is reduced to its residual value, and discarding it means the company cannot recover this remaining value.

When a Fully Depreciated Asset with a Residual Value Is