What are "costs of disposal"?
A)The incremental costs directly attributable to the disposal of an asset.
B)The incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense.
C)The incremental costs directly attributable to the disposal of an asset, excluding finance costs.
D)The amount obtainable from the sale of an asset in an arm's-length transaction between knowledgeable, willing parties.

Question

Quizplus · Accepted Answer

"Costs of disposal" refer to the incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense. Option A is too specific and does not exclude finance costs and income tax expenses. Option C is too restrictive as it excludes all finance costs. Option D refers to the fair value of an asset, not the costs associated with its disposal.

What Are "Costs of Disposal