A loss on disposal results if the cash proceeds received from the asset sale are less than the asset's carrying amount.

Name: A loss on disposal results if the cash proceeds received from the asset sale are less than the asset's carrying amount.
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Question

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When the cash proceeds from the sale of an asset are less than the asset's carrying amount (book value), the difference is recorded as a loss on disposal.

A Loss on Disposal Results If the Cash Proceeds Received