MB-310 Manage Fixed Assets Practice Question
A fixed asset has been fully depreciated but is still in use. The company decides to sell the asset for $5,000. The asset's value model has a net book value of $0. Which transaction type should be used to record the sale and remove the asset from the fixed asset subledger?
⚠ Common exam trap
It's easy for candidates to confuse disposal - scrap with disposal - sale; scrap is for assets with no proceeds, while sale is for assets sold for cash or other consideration.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
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Disposal - sale
Disposal - sale is the transaction type designed to record the sale of a fixed asset. It removes the asset's cost and accumulated depreciation, records the cash proceeds, and posts any gain or loss to the appropriate ledger accounts. For a fully depreciated asset sold for $5,000, the gain is $5,000. Other transaction types like scrap or write down do not handle sales proceeds and would not correctly remove the asset from the subledger.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Write up
Why it's wrong here
Write up is used to increase the value of an asset, typically for revaluation purposes. It is the opposite of what is needed when selling an asset. Applying a write up would increase the net book value and is not a valid transaction for recording a disposal. The asset must be removed using a disposal transaction type.
- ✓
Disposal - sale
Why this is correct
Disposal - sale is the correct transaction type when an asset is sold. It removes the asset's cost and accumulated depreciation from the value model, records the proceeds, and calculates any gain or loss on disposal. For a fully depreciated asset sold for $5,000, the entire proceeds would be recorded as a gain, and the asset would be removed from the subledger.
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Write down
Why it's wrong here
Write down is used to reduce the value of an asset when its fair market value declines below its book value, not to record a sale. It adjusts the asset's net book value downward but does not remove the asset from the subledger or record proceeds. Using write down for a sale would leave the asset on the books and misstate the gain or loss.
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Disposal - scrap
Why it's wrong here
Disposal - scrap is used when an asset is discarded with no proceeds. It removes the asset from the subledger but does not record any cash receipt. Since the company is selling the asset for $5,000, using scrap would incorrectly ignore the proceeds and fail to record the gain. The scrap transaction type is appropriate only when the asset has no residual value and is abandoned.
About these practice questions
This MB-310 question is part of Courseiva's 211-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
This MB-310 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MB-310 exam.