When an Asset Is Sold, the Gain or Loss on Disposal

question 18

Multiple Choice

When an asset is sold, the gain or loss on disposal is the difference between the:

• A) proceeds of sale and the fair value of the asset.
• B) proceeds of sale and the original cost of the asset.
• C) proceeds of sale and the carrying amount of the asset.
• D) original cost and the accumulated depreciation of the asset.

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Definitions:

Probability Assignment

An academic or educational task involving the calculation or analysis of probabilities concerning certain events or scenarios.

Legitimate

Something that is lawful, justified, and recognized as valid or conforming to established rules and standards.

Joint Frequency Distribution

A statistical representation showing the frequency of combined occurrences of two or more variables.

Contingency Table

A tool used in statistics to analyze and display the frequency distribution of variables, showing the number of observations for each combination of categories.