If a plant asset is sold at a gain the gain on disposal should reduce the cost of goods sold section of the income statement.

Name: If a plant asset is sold at a gain the gain on disposal should reduce the cost of goods sold section of the income statement.
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Question

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The gain on disposal of a plant asset should be reported separately on the income statement and not as a reduction of cost of goods sold. It should be reported as other income or expenses.

If a Plant Asset Is Sold at a Gain the Gain