A loss on disposal of long-lived assets can only occur if the cash proceeds received from the asset sale are less than the asset's carrying amount.

Name: A loss on disposal of long-lived assets can only occur if the cash proceeds received from the asset sale are less than the asset's carrying amount.
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

Quizplus · Accepted Answer

A loss on disposal occurs when the cash proceeds from the sale of the asset are less than the asset's carrying amount (book value), which is its original cost minus accumulated depreciation.

A Loss on Disposal of Long-Lived Assets Can Only Occur