When an asset is retired, the amount of the gain is equal to:
A) the asset's carrying amount.
B) the difference between the carrying amount and the proceeds.
C) the accumulated depreciation.
D) the amount of cash received.

Question

Quizplus · Accepted Answer

The gain on the retirement of an asset is calculated as the difference between the proceeds from the disposal of the asset and its carrying amount (original cost minus accumulated depreciation).

When an Asset Is Retired, the Amount of the Gain