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

Question

Quizplus · Accepted Answer

When the carrying amount of an asset equals its fair value at the date of sale, it means the asset is sold for exactly what it is recorded on the books for, resulting in no gain or loss on disposal.

If the Carrying Amount of an Asset Equals Its Fair