If a Plant Asset Is Retired Before It Is Fully

question 291

Multiple Choice

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

• A) a gain on disposal will be recorded.
• B) phantom depreciation must be taken as though the asset were still on the books.
• C) a loss on disposal will be recorded.
• D) no gain or loss on disposal will be recorded.

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Definitions:

Monte Carlo Method

A computational technique that uses random sampling and statistical modeling to estimate mathematical functions and simulate the behavior of various physical and mathematical systems.

Simulation Steps

Sequential actions or procedures used in a simulation process to represent the operation of a real-world process or system over time.

Time Compression

Strategies or processes aimed at reducing the time taken to complete tasks or deliver goods, thereby increasing efficiency and competitive advantage.

Computer Simulation

The use of software to create a virtual model of a real-world system or process to study its behavior under various conditions.