If the Proceeds from the Sale of a Plant Asset

question 45

Short Answer

If the proceeds from the sale of a plant asset exceed its ______________ a gain on disposal will occur.

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Definitions:

Security Interest

A legal claim or right granted to a creditor over the borrower's assets as a security for the repayment of a loan.

Repossessed Collateral

Assets that have been taken back by the lender from the borrower, usually due to default on a loan.

Security Interest

A security interest is a legal claim or entitlement provided to a lender or creditor over the borrower's assets, serving as collateral for the repayment of a loan or obligation.

Attached

Pertaining to property law and commercial transactions, it refers to the legal process by which a security interest is formally linked to specific assets, making it enforceable against third parties.