Which of the following statements regarding disposal of long-lived assets is not correct?
A)The gain or loss resulting from the disposal of a long-lived asset always appears below the "Income from Operations" line on the income statement.
B)A journal entry is usually needed to update depreciation expense on a long-lived asset at the time of disposal.
C)A company may dispose of long-lived assets by selling them,trading them in on new assets,or by scrapping them.
D)The amount of the gain or loss on disposal of a long-lived asset before the end of its useful life will be influenced by the depreciation method that had been used.

Question

Quizplus · Accepted Answer

The gain or loss resulting from the disposal of a long-lived asset may appear either above or below the "Income from Operations" line on the income statement. The placement depends on whether the disposal is considered part of the company's primary operations or not.

Which of the Following Statements Regarding Disposal of Long-Lived Assets