When an item of property, plant and equipment is sold, the resulting gain or loss is calculated as the difference between the:

Question

Quizplus · Accepted Answer

The gain or loss on the sale of property, plant and equipment is calculated as the difference between the net proceeds from sale (i.e. selling price less any selling expenses) and the asset's carrying amount at the date of sale (i.e. the original cost less accumulated depreciation). Therefore, the correct option is D - net proceeds from sale and the asset's carrying amount at the date of sale.

When an Item of Property, Plant and Equipment Is Sold