Chapter 9, Problem 9.8SE

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.

Partial-year depreciation: It is the amount of depreciation charged on the asset for some specific time period between the accounting years. It is calculated when the asset is disposed before the completion of an accounting year.

To journalize: the partial-year depreciation expense for A Company.

To determine

To Record: the journal entry for the disposal of the equipment.