If a plant asset is retired before it is fully depreciated and no salvage value is received

A) a gain on disposal occurs.
B) a loss on disposal occurs.
C) either a gain or a loss can occur.
D) neither a gain nor a loss occurs.

Fully Depreciated

A term used when a fixed asset has been depreciated to its salvage value and no longer carries a cost on the balance sheet except its possible residual value.

Loss on Disposal

Represents the financial loss a company incurs when it disposes of an asset for less than its carrying value.