When the Expected Cost to Dismantle and Remove an Asset

question 65

Multiple Choice

When the expected cost to dismantle and remove an asset exceeds the expected selling price of a depreciable asset, the difference is

• A)added to cost to determine the depreciable base
• B)deducted from accumulated depreciation in the year of disposal
• C)not included in the calculation of depreciation expense
• D)added to the depreciation expense in the year of disposal

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