ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 145

S60. When a plant asset is disposed of, a gain or loss may
result. The gain or loss would be classified as an extraordinary
item on the income statement if it resulted from

a. an involuntary conversion and the conditions of the
disposition are unusual and infrequent in nature.

b. a sale prior to the completion of the estimated useful life
of the asset.

c. the sale of a fully depreciated asset.