The book value of an asset will equal its fair market value at the date of sale if
A) a gain on disposal is recorded.
B) no gain or loss on disposal is recorded.
C) the plant asset is fully depreciated.
D) a loss on disposal is recorded.

Question

Quizplus · Accepted Answer

If no gain or loss on disposal is recorded, it means the selling price of the asset (fair market value) is equal to its book value. This would result in no adjustment needed for the asset's value on the books, and no gain or loss would be recorded.

The Book Value of an Asset Will Equal Its Fair