The current book value of an asset serves as the basis for determining the gain or loss ________.
A)at retention
B)at book value
C)at market value
D)at disposal

Question

Quizplus · Accepted Answer

The current book value of an asset is used to determine the gain or loss at disposal, which is when the asset is sold or otherwise disposed of. The gain or loss is calculated by subtracting the book value from the selling price, so knowing the book value is crucial in determining the financial outcome of the asset disposal.

The Current Book Value of an Asset Serves as the Basis