Asked by James Bertakis on Jul 03, 2024
Verified
If the disposal of an asset occurs during the year, depreciation is
A) not recorded for the year.
B) recorded for the whole year.
C) recorded for the fraction of the year to the date of the disposal.
D) not recorded if the asset is scrapped.
Disposal of an Asset
The process of selling, scrapping, or otherwise removing an asset from the company's balance sheet due to its disposal, sale, or obsolescence.
Depreciation Recorded
The process of allocating the cost of a tangible asset over its useful life to account for the loss of value over time.
- Compute the expense of depreciation utilizing different depreciation techniques.
- Assess how the depreciation and disposal of assets influence financial statements.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
C
Explanation :
Depreciation is recorded for the portion of the year that the asset was in use, up until the date it was disposed of. This reflects the expense associated with the asset's use during that specific period.
Learning Objectives
- Compute the expense of depreciation utilizing different depreciation techniques.
- Assess how the depreciation and disposal of assets influence financial statements.
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