When an asset is retired, the amount of the gain is equal to:
A) the asset's carrying amount.
B) the accumulated depreciation.
C) the amount of cash received.
D) the difference between the carrying amount and the proceeds.

Question

Quizplus · Accepted Answer

When an asset is retired or sold, the gain or loss is determined by the difference between the carrying amount of the asset (cost minus accumulated depreciation) and the amount of cash received from the sale. Therefore, the correct answer is D, the difference between the carrying amount and the proceeds.

When an Asset Is Retired, the Amount of the Gain