The Gain or Loss on Disposal of a Non-Current Asset

question 38

Multiple Choice

The gain or loss on disposal of a non-current asset is calculated as the difference between:

• A) fair value and selling price.
• B) replacement value and selling price.
• C) selling price and carrying amount.
• D) fair market value and accumulated depreciation.

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Definitions:

SEC

The United States Securities and Exchange Commission is a federal body tasked with overseeing the securities market and safeguarding investors.

Fair Price

The equilibrium price for a good or service in the market where the quantity supplied equals the quantity demanded.

Exercise Price

The predetermined price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Market Price

The current financial rate for assets or services set by the open market.