A gain on sale of a plant asset occurs when the proceeds of the sale are greater than the

Question

Quizplus · Accepted Answer

A gain on the sale of a plant asset occurs when the selling price (proceeds) of the asset is greater than its book value (cost minus accumulated depreciation). The salvage value and market value are not relevant in determining a gain on sale of a plant asset. Accumulated depreciation is subtracted from the cost of the asset to determine its book value, so it is also not the correct answer.

A Gain on Sale of a Plant Asset Occurs When