Question

The gain or loss from disposal of a component of a business is shown as a (an):

Answer 1

The gain or loss from disposal of a component of a business is shown as an accounting gain or loss.

Step-by-step explanation:

The gain or loss from disposal of a component of a business is shown as an accounting gain or loss. When a business disposes of a component, such as selling a piece of equipment, the difference between the amount received from the sale and the net book value of the component is recorded as a gain or loss. For example, if a component has a net book value of $500 and is sold for $300, the business would record a loss of $200.