CFA Practice Question

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CFA Practice Question

When a plant asset is discarded or disposed of in some other way, it is necessary to record ______.

I. the profit/loss on sale
II. depreciation expense for the partial year up to the date of disposal
III. the proceeds on sale
Correct Answer: I, II and III

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...
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