39) When a firm sells or abandons an statement measured? is the A) The differenc

Question

39) When a firm sells or abandons an statement measured? is the A) The difference between cash proceeds received and the acquisitod deprecia asset, how is the gain or loss to be recognized on the income and the carrying value of the asset. B) The difference D) The difference between the book value of the asset and 40) Which of the following situations always results asset. between cash proceeds received and the acquisition value of the between cash proceeds received and the accumulated depreciation ot the carrying value of the asset. in a loss on derecognition of an asset? A) The asset is abandoned. B) The cash proceeds from the sale are less than the book value of the asset. C) its book value at the time of derecognition. The carrying value of the asset is less than D) Th e cash proceeds from the sale (if any) are less than the acquisition cost of the asset. 41) Under current accounting practice, what are the two general classes of intangible assets? A) legally restricted and unrestricted B) monetary and non-monetary

Explanation / Answer

39) The correct option is A) the difference between cash proceeds received and the carrying value of the asset.

Carrying Value is the book value of the asset = Cost of Asset – Accumulated Depreciation

There will be a gain where Cash Proceeds are higher than the Carrying Value

There will be a loss where cash proceeds are lesser than the carrying value.

40)

The correct option is C) the carrying value of the asset is less than its book value at the time of derecognition.

Derecognition is the impairment of asset. Impairment of Asset will be done if the carrying value of the asset is less than its book value.

41) Please provide full options

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