If a long-lived asset is sold and the carrying amount is higher than the proceeds received,
A) profit will be increased.
B) profit will be decreased.
C) there will be no effect on profit.
D) the current ratio will increase.

Question

Quizplus · Accepted Answer

When a long-lived asset is sold for less than its carrying amount, the difference is recorded as a loss, which decreases profit.

If a Long-Lived Asset Is Sold and the Carrying Amount