A loss on disposal is recognized when the selling price of the asset is ________ the book value.
A)greater than
B)equal to
C)less than
D)less than or equal to

Question

Quizplus · Accepted Answer

If the selling price of the asset is less than the book value, it means that the asset is sold at a lower price than its carrying value, resulting in a loss. Therefore, a loss on disposal is recognized when the selling price of the asset is less than the book value.

A Loss on Disposal Is Recognized When the Selling Price