The sale of a depreciable asset for an amount less than its cost always requires the recognition of a loss in the financial records of the company.

Question

Quizplus · Accepted Answer

A sale of a depreciable asset for less than its cost does not always result in a loss; it depends on the asset's book value, which is the cost minus accumulated depreciation. If the sale price is less than the book value, a loss is recognized.

The Sale of a Depreciable Asset for an Amount Less