A Gain or Loss on Disposal of a Plant Asset

question 10

Multiple Choice

A gain or loss on disposal of a plant asset is determined by comparing the

• A) replacement cost of the asset with the asset's original cost.
• B) book value of the asset with the asset's original cost.
• C) original cost of the asset with the proceeds received from its sale.
• D) book value of the asset with the proceeds received from its sale.

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Definitions:

Error Terms

In statistical modeling, these represent the difference between observed values and the values predicted by the model, reflecting unexplained or random variability.

Variances

A measure of the dispersion or spread of a set of data points, calculated as the average of the squared differences from the mean.

Least Squares Line

A line of best fit determined by minimizing the sum of the squares of the vertical distances of the points from the line.

Weight

A measure of the heaviness of an object; in statistics, it refers to the emphasis or importance assigned to elements of a dataset.