Final answer:
The statement is true; for the sale of an asset, the sale price, depreciation to the sale date, and historic cost are necessary to calculate any gain or loss for financial reporting.
Step-by-step explanation:
When an asset is sold, it is indeed necessary to know the sale price of the asset, the amount of depreciation charged to the date of sale, and the historic cost of the asset. These details are important for calculating any gain or loss on the sale, for tax purposes, and for accurate financial reporting.
The sale price tells us the amount of cash or other consideration received. The accumulated depreciation provides information on how much of the asset's cost has been written off over time, reflecting wear and tear or obsolescence. The historical cost is the original value of the asset at the time of purchase.
To calculate the gain or loss on the sale of the asset, one would subtract the asset's book value (historic cost minus accumulated depreciation) from the sale price. If the sale price exceeds the book value, there is a gain; if it is less, there is a loss.
The question posed is true; these financial figures are essential for accurately reflecting the results of the asset sale on the financial statements.