Gain or loss on the disposal of long-term operating asset


Response to the following questions:

1. Why is it common to have a gain or loss on the disposal of a long-term operating asset? Is it true that if the useful life and salvage value of an asset could be known with certainty and were realized, there would never be such a gain or loss?

2. When recording the disposal of a long-term operating asset, why is it necessary to debit the accumulated depreciation of the old asset?

If possible, please give examples to better understand your answers.

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Accounting Standards: Gain or loss on the disposal of long-term operating asset
Reference No:- TGS02115830

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