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.

Analyze the impact of taxation and government policies on savings and investment.

Understand the distinction between real and nominal interest rates and their determinants.

Comprehend the implications of changes in the equilibrium interest rate on the economy.

Understand the concepts of future value, present value, and compound interest in personal finance.

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Definitions:

Disposable Income

The finance available to households for expenditures and saving after reducing income taxes.

Disposable Income

Money that households can earmark for spending and saving after income taxes are considered.

Consuming Too Much

Consuming too much refers to the act of using or buying more resources or products than are needed, often leading to waste and potential environmental and economic consequences.

Saving Too Little

A situation where individuals or countries do not save enough income or resources for future needs, potentially leading to financial instability.