Gain or loss on the disposal of assets is determined by comparing the disposed asset's book value to the value of any assets received.

Question

Quizplus · Accepted Answer

This statement is true, as gain or loss on the disposal of assets is calculated by subtracting the book value of the disposed asset from the value of any assets received in exchange. If the assets received are more valuable than the book value of the disposed asset, a gain is recognized. If the assets received are less valuable than the book value of the disposed asset, a loss is recognized.

Gain or Loss on the Disposal of Assets Is Determined