If a Plant Asset Is Retired Before It Is Fully

question 141

Multiple Choice

If a plant asset is retired before it is fully depreciated, and the salvage value received is less than the asset's book value,

• A)a gain on disposal occurs.
• B)a loss on disposal occurs.
• C)there is no gain or loss on disposal.
• D)additional depreciation expense must be recorded.

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Definitions:

Service Provider

A company or individual that offers services to individuals or other businesses in exchange for payment.

Product Line

A group of related products manufactured or sold by a business, often catering to a particular category or market segment.

Distribution Strategies

Plans developed by organizations to ensure the delivery of their products or services to the end user.

Pricing Strategies

Methods businesses use to set the selling price of their products or services.