The sale of a depreciable asset resulting in a loss indicates that the proceeds from the sale were

Question

Quizplus · Accepted Answer

When the sale of a depreciable asset results in a loss, it means that the proceeds from the sale were less than the book value of the asset. Book value is the cost of the asset minus its accumulated depreciation, and it represents the value of the asset on the company's balance sheet. Therefore, if the proceeds from the sale are less than the book value, it indicates that the asset has been fully depreciated, and the company was not able to recover its entire investment in the asset.

The Sale of a Depreciable Asset Resulting in a Loss