A Loss on Disposal of an Asset Is Reported

question 89

Multiple Choice

A loss on disposal of an asset is reported:

• A)in the Other Revenues section of the income statement.
• B)in the Other Expenses section of the income statement.
• C)as a direct increase to the asset account on the balance sheet.
• D)as a direct decrease to the asset account on the balance sheet.

---

Definitions:

After-Tax Lease Payment

The lease payment amount after accounting for the tax benefits or obligations, impacting the net cost to the lessee.

Tax Rate

The share of income an individual or business entity is required to pay in taxes.

CCA Class

A classification used in Canadian tax law for determining the depreciation rate for different types of tangible capital assets.

Leasing NET Advantage

A financial comparison metric that calculates the cost efficiency of leasing an asset rather than purchasing it, taking into account all associated expenses and savings.