When an item of property,plant and equipment is sold,the first step is to bring the depreciation up to date.

Question

Quizplus · Accepted Answer

When an item of property, plant and equipment (PPE) is sold, the depreciation needs to be brought up to date to calculate the carrying amount of the asset. This is necessary to determine the gain or loss on disposal, which is calculated as the difference between the carrying amount and the sale proceeds. Therefore, the statement is true.

When an Item of Property,plant and Equipment Is Sold,the First