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Basic Question 7 of 9
When a plant asset is discarded or disposed of in some other way, it is
necessary to record ______.
II. depreciation expense for the partial year up to the date of disposal
III. the proceeds on sale
I. the profit/loss on sale
II. depreciation expense for the partial year up to the date of disposal
III. the proceeds on sale
User Contributed Comments 3
| User | Comment |
|---|---|
| ascruggs92 | Tricky only because I thought this referred to Abandonment, in which case there could only be a potential loss (if salvage value is greater than zero) and there would be no proceeds from the sale |
| davidkhang | Tricky! @ascruggs92 that's exactly what I thought as well! |
| nigelyang7 | same here... |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
explain and evaluate how impairment and derecognition of property, plant, and equipment and intangible assets affect the financial statements and ratios
CFA® 2025 Level I Curriculum, Volume 2, Module 7.