On disposal of an asset a gain or loss is the difference between the proceeds from sale anD.
A) the cost of an asset;
B) residual value of the asset;
C) carrying amount of the asset;
D) revalued amount of the asset;
E) None of the given answers.

Question

Quizplus · Accepted Answer

The carrying amount of the asset is the book value of the asset, which is the original cost minus accumulated depreciation. The gain or loss on disposal of the asset is calculated as the difference between the proceeds from sale and the carrying amount of the asset.

On Disposal of an Asset a Gain or Loss Is