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(True) or (False)? The gain or loss on the sale of an asset can be calculated as the difference between sale price and accumulated depreciation.

User Mike Todd
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Answer:

False

Step-by-step explanation:

Rather, gain or loss on the sale of an asset can be calculated as the difference between sale price and net book value (NBV).

The net book value can be calculated by accumulated depreciation from the purcahse price of the assets.

Therefore, gain or loss on the sale of an asset can be calculated using the following fomula:

Gain (loss) on the sale of an asset = Sales price - Net book value

User Zarina
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