If a plant asset is retired before it is fully depreciated, and no residual or scrap value is received,

Name: If a plant asset is retired before it is fully depreciated, and no residual or scrap value is received,
Brand: Quizplus
Rating: 4.9 (52 reviews)

Question

Quizplus · Accepted Answer

If a plant asset is retired before it is fully depreciated and no residual or scrap value is received, a loss on disposal will be recorded. This is because the cost of the asset is higher than the salvage value, resulting in a loss. There will be no gain recorded in this scenario.

If a Plant Asset Is Retired Before It Is Fully