If the Carrying Amount of an Asset Equals Its Fair

question 108

Multiple Choice

If the carrying amount of an asset equals its fair value at the date of sale,

• A) a gain on disposal is recorded.
• B) no gain or loss on disposal is recorded.
• C) the long-lived asset is fully depreciated.
• D) a loss on disposal is recorded.

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Definitions:

Clarify Expectations

The process of making sure all parties involved understand the requirements, goals, and responsibilities in a certain context.

First Instincts

The initial, intuitive response or reaction one has towards a situation or decision.

Critical Thinking Skills

The ability to think clearly and rationally about what to do or what to believe, including the ability to engage in reflective and independent thinking, and to question assumptions and evidence critically.

Review Schedule

A planned arrangement of study or assessment times to go over material or tasks, ensuring comprehension and completion.