Discarding of an asset: Itrefers to an activity of removing of asset after its useful life expires. When an asset is fully depreciated and has no residual value, the asset is removed for no consideration. In such process, the contra-asset account- accumulated depreciation account is also removed. Moreover, the loss on disposal is calculated by deducting the accumulated depreciation from the cost of the asset. To Journalize: the disposal of the plant asset

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Chapter 9, Problem 9.7SE

To determine

Discarding of an asset: Itrefers to an activity of removing of asset after its useful life expires. When an asset is fully depreciated and has no residual value, the asset is removed for no consideration. In such process, the contra-asset account- accumulated depreciation account is also removed. Moreover, the loss on disposal is calculated by deducting the accumulated depreciation from the cost of the asset.

To Journalize: the disposal of the plant asset

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