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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 just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
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® 2024 Level I Curriculum, Volume 2, Module 7.