Final answer:
The statement that a loss on disposal of a long-lived asset is calculated in the same way for both sale and retirement is true. The loss is determined by subtracting the asset's net book value from the sale proceeds or the disposal value.
Step-by-step explanation:
A loss on disposal of a long-lived asset is indeed calculated in the same way, whether the asset has been sold or retired. This statement is true. The calculation of the loss involves subtracting the asset's net book value (original cost less accumulated depreciation) from the proceeds received from the sale or the net disposal value. If the result is negative, it is considered a loss.
For example, if a company sells a piece of machinery with a book value of $10,000 for $7,000, the company would record a loss of $3,000 ($7,000 - $10,000). Similarly, if the asset is simply retired and has no resale value, the entire book value of the asset would be considered a loss.