If a Plant Asset Is Sold Before It Is Fully

question 197

Multiple Choice

If a plant asset is sold before it is fully depreciated,

• A)only a gain on disposal can occur.
• B)only a loss on disposal can occur.
• C)either a gain or a loss can occur.
• D)neither a gain nor a loss can occur.

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Definitions:

Unpaid Wages

Compensation that has been earned by an employee but has not yet been paid by the employer.

Services Rendered

Services rendered refer to the completion and provision of services agreed upon between a provider and a recipient.

Undisclosed Principal

A party in a contractual agreement whose identity is not revealed to the third party by the agent during the time of the agreement.

Partially Disclosed Principal

A principal whose identity is not known by a third party, although the third party is aware that the agent is making an agreement on behalf of a principal.