If a Plant Asset Is Retired Before It Is Fully

question 85

Multiple Choice

If a plant asset is retired before it is fully depreciated and no salvage value is received

• A) a gain on disposal occurs.
• B) a loss on disposal occurs.
• C) either a gain or a loss can occur.
• D) neither a gain nor a loss occurs.

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Definitions:

Police Powers

The inherent authority of a government to regulate behavior and enforce order within its territory, often for the protection of health, safety, welfare, and morals of its citizens.

Ninth Amendment

A part of the U.S. Constitution suggesting that the listing of specific rights in the Constitution does not mean that other rights not listed are denied to the people.

Dormant Commerce Clause

The Dormant Commerce Clause refers to the principle that state laws cannot unduly burden interstate commerce, derived from the Commerce Clause of the U.S. Constitution.

Privileges and Immunities Clause

A provision in the U.S. Constitution ensuring that citizens of each state are entitled to the privileges and immunities of citizens in the several states.