Question

Which of the following statements about disposal of long-lived assets is not correct?

A) The gain or loss resulting from the disposal of a long-lived asset always appears below the Income from Operations line on the income statement.

B) A journal entry is usually needed to update depreciation expense on a long-lived asset at the time of disposal.

C) A company may dispose of long-lived assets by selling them, trading them in on new assets, or by scrapping them.

D) The amount of the gain or loss on disposal of a long-lived asset before the end of its useful life will be influenced by the depreciation method that had been used.

Answer

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