The gain or loss on the sale of a plant asset is determined by comparing market value of assets received with ________.

Question

Quizplus · Accepted Answer

The book value of a plant asset is the original cost minus accumulated depreciation. When a plant asset is sold, the gain or loss is determined by comparing the market value of the assets received with the book value of the asset being sold. If the market value is higher than the book value, there is a gain. If the market value is lower than the book value, there is a loss. Therefore, A) book value is the best choice.

The Gain or Loss on the Sale of a Plant