Question Details

A loss on disposal of a capital asset as a result of a sale or a retirement is calculated 



TRUE OR FALSE:
	1.	The net book value of a capital asset is the amount originally paid for the asset less anticipated residual value.

2.	A loss on disposal of a capital asset as a result of a sale or a retirement is calculated in the same way.

	3.	A capital asset must be fully amortized before it can be removed from the books.

	4.	If a capital asset is sold at a gain, the gain on disposal should reduce the cost of goods sold section of the income statement.

	5.	A loss on disposal of a capital asset can only occur if the cash proceeds received from the asset sale are less than the asset's book value.



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