Asked by Bryce McCoy on Jun 20, 2024
Verified
If the proceeds from the sale of equipment exceed its carrying amount, a gain on disposal is reported.
Gain on Disposal
The profit earned from the sale of an asset, calculated as the sale proceeds minus the book value of the asset sold.
- Acquire knowledge of the accounting practices for handling gains, losses, and asset disposals.
Verified Answer
EJ
Estrellita JovissaJun 21, 2024
Final Answer :
True
Explanation :
When the proceeds from the sale of equipment exceed its carrying amount (original cost minus accumulated depreciation), the difference is reported as a gain on disposal in the financial statements.
Learning Objectives
- Acquire knowledge of the accounting practices for handling gains, losses, and asset disposals.
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