If the proceeds from the sale of equipment exceed its carrying amount, a gain on disposal is reported.

Name: If the proceeds from the sale of equipment exceed its carrying amount, a gain on disposal is reported.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the proceeds from the sale of equipment exceed its carrying amount (original cost minus accumulated depreciation), the difference is reported as a gain on disposal in the financial statements.

If the Proceeds from the Sale of Equipment Exceed Its