When a non-current asset is sold the gain or loss on disposal is the difference between:

Question

Quizplus · Accepted Answer

The gain or loss on disposal of a non-current asset is calculated as the difference between the selling price and carrying amount (which is the cost of the asset less accumulated depreciation). In other words, it represents the amount by which the selling price exceeds or falls short of the cost less depreciation of the asset. Therefore, option D (selling price and carrying amount) is the best choice.

When a Non-Current Asset Is Sold the Gain or Loss