Accounting for IGCSE & O level - Accounting Procedures (Section 18 - No. 35)
When an asset is disposed of, the net book value should be compared to which of the following to determine if a gain or loss has occurred?
The asset's original cost.
The accumulated depreciation.
The selling price or proceeds from the disposal.
The salvage value.
Explanation
Gain or Loss = Proceeds from Disposal - Net Book Value
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