Which of the Following Statements Regarding Disposal of Long-Lived Assets

question 112

Multiple Choice

Which of the following statements regarding disposal of long-lived assets is not correct?

• A)The gain or loss resulting from the disposal of a long-lived asset always appears below the "Income from Operations" line on the income statement.
• B)A journal entry is usually needed to update depreciation expense on a long-lived asset at the time of disposal.
• C)A company may dispose of long-lived assets by selling them,trading them in on new assets,or by scrapping them.
• D)The amount of the gain or loss on disposal of a long-lived asset before the end of its useful life will be influenced by the depreciation method that had been used.