A gain or loss on disposal of a long-lived asset is determined by comparing the
A) replacement cost of the asset with the asset's original cost.
B) carrying amount of the asset with the asset's original cost.
C) original cost of the asset with the proceeds received from its sale.
D) carrying amount of the asset with the proceeds received from its sale.

Question

Quizplus · Accepted Answer

The gain or loss on disposal of a long-lived asset is determined by comparing the carrying amount of the asset (book value) with the proceeds received from its sale.

A Gain or Loss on Disposal of a Long-Lived Asset