When Property, Plant, and Equipment Is Sold

question 35

Multiple Choice

When property, plant, and equipment is sold:

• A) no gain or loss should be recognized if depreciation was taken on the asset
• B) a loss should be recognized but not a gain if depreciation was taken on the asset
• C) depreciation should be recorded through the date of sale
• D) the carrying amount of the asset should be credited to the asset account

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Definitions:

Environmental Resources

Natural resources and conditions that support life and human economic activities, such as water, air, soil, and minerals.

Societal Needs

The basic requirements essential for communities and societies to function, such as food, shelter, health care, and education.

Sustainability

The capacity to maintain or sustain a process or situation over time, often relating to environmental, social, and economic factors.

Natural Resources

Naturally occurring materials or substances that can be exploited for economic gain, such as minerals, forests, water, and fertile land.