If a Plant Asset Is Retired Before It Is Fully

question 71

Multiple Choice

If a plant asset is retired before it is fully depreciated and the salvage value received is less than the asset's book value

• A) a gain on disposal occurs.
• B) a loss on disposal occurs.
• C) there is no gain or loss on disposal.
• D) additional depreciation expense must be recorded.

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Definitions:

Community College

A type of educational institution that provides two-year associate degrees, certifications, and sometimes bachelor's degrees, often at a lower cost and with open enrollment.

Qualifying Education Expense

Expenses related to education, such as tuition and fees, that are necessary for enrollment or attendance at an eligible educational institution.

Student Loan Interest Deduction

A tax deduction available for the interest paid on student loans used for higher education, which can reduce taxable income.

Child Support Payment

Payments made by a noncustodial parent to assist with the financial support of their children.