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:

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Individuals with a high level of knowledge, skill, or expertise in a particular domain or field, often acquired through extensive experience or education.

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Beginners or individuals who are new to a particular field or activity, lacking the experience and knowledge of more seasoned experts.

Stimuli

External elements or occurrences that elicit responses or reactions from sensory organs or the nervous system.

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