A Gain on the Disposal of an Asset Occurs When

question 207

Multiple Choice

A gain on the disposal of an asset occurs when the:

• A)asset's book value is greater than the selling price.
• B)asset's cost is greater than the asset's accumulated depreciation.
• C)selling price is greater than the asset's book value.
• D)accumulated depreciation is greater than the asset's book value.

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Definitions:

Water Table

The level below which the ground is completely saturated with water, marking the boundary between the unsaturated zone and the saturated zone.

Permeability

is a measure of how easily fluids can pass through a porous material or rock.

Fractured Granite

Rock that has been broken or cracked, particularly granite, making it more permeable or weak.

Porosity

The measure of void spaces in a material, expressed as a percentage of the volume of voids over the total volume, indicating how much fluid a rock can hold.