Accounting for IGCSE & O level - Accounting Procedures (Section 19 - No. 32)
How does the choice of depreciation method affect the calculation of gain or loss on disposal?
It affects the depreciation expense and therefore the net book value.
It directly determines the selling price.
It does not affect the calculation of gain or loss on disposal.
It only affects the journal entries.
Explanation
The depreciation method chosen determines the accumulated depreciation, which affects the book value and therefore the gain or loss on disposal.
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