Chapter 10, Problem 10Q

To determine

Plant Asset: Plant asset refer to the long-term or fixed asset which is depreciable at a certain rate over its useful life.

Depreciation: Depreciation refers to a method of accounting under which the value of a fixed asset is written off during the life of that asset.

Accumulated Depreciation: Accumulated depreciation refers to the cumulative depreciation charged on the asset every year till date. It is a contra-asset account which is credited when depreciation is charged. It is shown as a deduction from the asset in the balance sheet.

To Explain: Method to compute gain or loss on sale of plant asset.