CFA Practice Question
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
Correct Answer: I, II and III
User Contributed Comments 2
| 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! |