The gain or loss on the disposal of an intangible asset is determined as the difference between:

Question

Quizplus · Accepted Answer

The gain or loss on disposal of an intangible asset is determined as the difference between the net proceeds from the disposal and the carrying amount, which is the cost of the asset less any accumulated amortization or impairment losses. Option A is incorrect because it considers the amortized amount instead of the carrying amount, while option B is incorrect as it uses the recoverable amount which is not relevant in this context. Option D is incorrect because it considers the initial cost, which is not relevant at the point of disposal.

The Gain or Loss on the Disposal of an Intangible