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If a Company Sells a Major Plant Asset

Question 129

Multiple Choice

If a company sells a major plant asset:


A) depreciation expense should be recorded through the date of sale.
B) the book value of the asset should be credited to the asset account.
C) no gain should be recognized if depreciation expense was taken on the asset before the asset was sold.
D) a loss should be recognized, but not a gain, if depreciation expense was taken on the asset before the asset was sold.

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