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:

Medullary Cavity

A central cavity of bone shafts where red and/or yellow marrow is stored.

Compact Bone

Type of bone that contains osteons consisting of concentric layers of matrix and osteocytes in lacunae.

Spongy Bone

A type of bone tissue that has a porous structure, found at the ends of long bones and within the interior of vertebrae, facilitating the movement of nutrients and waste.

Epiphyseal Plate

A growth plate located at the ends of long bones where new bone tissue is produced during growth in children and adolescents.