When an Asset Is Sold the Gain or Loss on Disposal

question 64

Multiple Choice

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

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

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Definitions:

Structural Power

The power held by individuals or groups due to their positions within the organizational, economic, or social structures.

Legitimacy

The general perception that an action, entity, or law is appropriate, just, and acceptable within a societal context.

Employee Ownership

A business model where employees have a significant stake in the company, often through stock ownership plans, influencing its direction and sharing in its profits.

Business Decisions

Choices or resolutions made by the leadership of a company regarding its operations, strategy, and resource allocation.