If the carrying amount of an asset equals its fair value at the date of sale, then
A)a gain on disposal is recorded.
B)no gain or loss on disposal is recorded.
C)the asset is fully depreciated.
D)a loss on disposal is recorded.

Question

Quizplus · Accepted Answer

If the carrying amount of an asset equals its fair value at the date of sale, there is no gain or loss on disposal, as the asset is being sold for the same value that it is recorded on the books.

If the Carrying Amount of an Asset Equals Its Fair