The Book Value of an Asset Will Equal Its Fair

question 4

Multiple Choice

The book value of an asset will equal its fair market value at the date of sale if

• A) a gain on disposal is recorded.
• B) no gain or loss on disposal is recorded.
• C) the plant asset is fully depreciated.
• D) a loss on disposal is recorded.

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Definitions:

Specially Manufactured

Pertains to goods that are custom-made or tailored to the specific requirements of a buyer.

Course Of Dealing

A sequence of previous conduct between parties that establishes a common basis of understanding for interpreting their expressions and agreements.

Cash Registers

Mechanical or electronic devices used in retail stores to calculate and record sales transactions.

Statute Of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the parties to be enforceable.