Gains or losses on sales of tangible plant assets are usually measured by the difference between the cash received and the net book value of the asset given up.

Question

Quizplus · Accepted Answer

This is true according to generally accepted accounting principles (GAAP) which state that gains or losses on sales of assets should be calculated as the difference between the cash received and the asset's net book value (which is its original cost minus accumulated depreciation).

Gains or Losses on Sales of Tangible Plant Assets Are