Asked by Nacole Watkins on Jun 12, 2024
Verified
Gain or loss on the disposal of assets is determined by comparing the disposed asset's carrying amount to the value of any assets received.
Carrying Amount
The value at which an asset or liability is recorded on the balance sheet, accounting for depreciation, impairments, and amortization.
- Comprehend the process of disposing assets and calculating any associated financial gains or losses.
Verified Answer
HS
hector salinasJun 12, 2024
Final Answer :
True
Explanation :
This statement is true. The gain or loss on the disposal of assets is calculated by subtracting the carrying amount of the disposed asset from the sum of any cash received and the fair value of any assets received in exchange.
Learning Objectives
- Comprehend the process of disposing assets and calculating any associated financial gains or losses.