When a company sells a piece of equipment used in the business,the gain or loss on the disposal is shown as:

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Quizplus · Accepted Answer

The gain or loss on the disposal of equipment is not an extraordinary item, as it is a normal part of a company's operations. It is also not part of discontinued operations unless the sale of the equipment represents a significant part of the company's overall operations. Instead, it is reported as part of other gains and losses in the income statement. It is not an adjustment to the beginning balance of retained earnings, as retained earnings are only adjusted for net income or loss, dividends, and other comprehensive income.

When a Company Sells a Piece of Equipment Used in the Business,the