A loss on disposal of a plant asset can only occur if the cash proceeds received from the asset sale is less than the asset's book value.

Name: A loss on disposal of a plant asset can only occur if the cash proceeds received from the asset sale is less than the asset's book value.
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A loss occurs when the cash proceeds from the sale of an asset are less than its book value, which is the asset's cost minus accumulated depreciation.

A Loss on Disposal of a Plant Asset Can Only