Which of the Following Statements About Disposal of Long-Lived Assets

Multiple Choice

Which of the following statements about disposal of long-lived assets is not correct?

A) The gain or loss resulting from the disposal of a long-lived asset always appears below the "Income from Operations" line on the income statement.
B) A journal entry is usually needed to update depreciation expense on a long-lived asset at the time of disposal.
C) A company may dispose of long-lived assets by selling them,trading them in on new assets,or by scrapping them.
D) The amount of the gain or loss on disposal of a long-lived asset before the end of its useful life will be influenced by the depreciation method that had been used.