Accounting for IGCSE & O level - Accounting Procedures (Section 18 - No. 48)
When calculating the gain or loss on disposal, which amount represents the 'carrying amount'?
The original cost of the asset.
The asset's market value at the time of sale.
The asset's book value at the time of sale.
The proceeds from the sale.
Explanation
Carrying amount is also known as book value, which is equal to the asset's cost minus accumulated depreciation.
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