When a Plant Asset Is Disposed Of, a Gain or Loss

question 118

Multiple Choice

When a plant asset is disposed of, a gain or loss may result. The gain or loss would be classified as an extraordinary item on the income statement if it resulted from

• A) an involuntary conversion and the conditions of the disposition are unusual and infrequent in nature.
• B) a sale prior to the completion of the estimated useful life of the asset.
• C) the sale of a fully depreciated asset.
• D) an abandonment of the asset.

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Definitions:

Shape

The external form or appearance of an object or a molecule determined by its spatial arrangement.

D Orbitals

A type of atomic orbital with a characteristic clover shape, involved in bonding in elements beyond the first twenty.

Shape

In chemistry, this often refers to the geometric arrangement of atoms in molecules or the spatial form of a molecule.

Electron Orbital

A mathematical function that describes the wave-like behavior of either one electron or a pair of electrons in an atom.