If a plant asset is sold before it is fully depreciated,

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Quizplus · Accepted Answer

When a plant asset is sold before it is fully depreciated, either a gain or a loss can occur. The gain or loss is calculated by comparing the sales price of the asset with its book value (cost minus accumulated depreciation). If the sales price is higher than the book value, a gain occurs. If the sales price is lower than the book value, a loss occurs. Therefore, both options are possible.

If a Plant Asset Is Sold Before It Is Fully