A gain or loss on disposal of a plant asset is determined by comparing theGroup of answer choicesoriginal cost of the asset with the proceeds received from its sale.replacement cost of the asset with the asset's original cost.book value of the asset with the proceeds received from its sale.book value of the asset with the asset's original cost.

If a plant asset is retired before it is fully depreciated and no salvage value is received,Group of answer choicesa gain on disposal occurs.neither a gain nor a loss occurs.a loss on disposal occurs.either a gain or a loss can occur.

A loss on disposal of a plant asset is reported in the financial statementsGroup of answer choicesin the Other Revenues and Gains section of the income statement.in the Other Expenses and Losses section of the income statement.as a direct increase to the capital account on the balance sheet.as a direct decrease to the capital account on the balance sheet.

Which of the following situations will result in recognizing a gain on sale of a plant asset?Multiple choice question.An asset that cost $5,000 with accumulated depreciation of $3,000 is sold for $1,500.A fully depreciated asset is sold for $1,000.An asset with book value of $2,000 is sold for $2,000.An asset with a book value of $2,000 is sold for $1,500.A fully depreciated asset is discarded.

14.  The book value of a plant asset is determined by *a. deducting the depreciation expense from the original balance of the asset accountb. deducting the balance of the accumulated depreciation from the asset costc. adding accumulated depreciation balance to the asset costd. by deducting residual value from the asset cost

An entity purchased property for $6 million on 1 July 20X3. The land element of the purchase was $1 million. The expected life of the building was 50 years and its residual value nil. On 30 June 20X5 the property was revalued to $7 million, of which the land element was $1.24 million and the buildings $5.76 million. On 30 June 20X7, the property was sold for $6.8 million. What is the gain on disposal of the property that would be reported in the statement of profit or loss for the year to 30 June 20X7? A Gain $40,000 B Loss $200,000 C Gain $1,000,000 D Gain $1,240,000