If an asset's ________ is greater than its current book value,a gain on disposal occurs.
A)original book value
B)amount of depreciation
C)disposal value
D)original market value

Question

Quizplus · Accepted Answer

The disposal value refers to the amount received from selling or disposing of the asset. If the disposal value is greater than the current book value (which is based on the original book value minus accumulated depreciation), a gain on disposal occurs. Therefore, choice C is the correct answer. The other options are not directly related to determining a gain on disposal.

If an Asset's ________ Is Greater Than Its Current Book