If the carrying amount of an asset equals its selling price 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

When the carrying amount of an asset equals its selling price, there is no gain or loss on disposal because the asset is sold for its book value.

If the Carrying Amount of an Asset Equals Its Selling