When firms dispose of a long-lived asset before the end of its useful life,the difference between the net book value of the asset and the sale proceeds is a gain or loss from a discontinued item.

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Chahine Jebabli · Accepted Answer

Final Answer : False, Explanation :  The difference between the net book value of the asset and the sale proceeds is recognized as a gain or loss on disposal of the asset, not as a gain or loss from a discontinued item. Discontinued operations refer to components of an entity that have been disposed of or classified as held for sale and represent a separate major line of business or geographical area of operations.

When firms dispose of a long-lived asset before the end of its useful life,the difference between the net book value of the asset and the sale proceeds is a gain or loss from a discontinued item.

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