When computing the gain or loss on the sale of a plant asset, the annual depreciation for the year of sale must be considered, but if the amount is small, this amount can be ignored.

Question

Quizplus · Accepted Answer

The annual depreciation for the year of sale must always be considered when computing the gain or loss on the sale of a plant asset, regardless of the amount, to ensure accurate financial reporting.

When Computing the Gain or Loss on the Sale of a Plant