Question

The gain or loss on the sale of the asset is computed as

follows:
Gain / (Loss) on sale = Market value of asset – Net book value
of asset
Group of answer choices
True
False

Answer 1

True

Step-by-step explanation:

The gain or loss on the sale of an asset is calculated by subtracting the cost of the asset from the sale price / market value

Gain / (Loss) on sale = ( Selling price + Provision for depreciation ) - Cost of asset

In other terms, that is

= Selling price - (cost of asset - provision for depreciation) = selling price - NBV = market value - NBV