A loss on disposal of an asset is recorded when cash received is less than book value.

Name: A loss on disposal of an asset is recorded when cash received is less than book value.
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A loss on disposal of an asset is recorded when the cash received from selling an asset is less than its book value. This is because the book value represents the remaining amount of the asset's original cost that has not yet been depreciated, and selling the asset for less than this amount results in a loss.

A Loss on Disposal of an Asset Is Recorded When