Whether the disposal of fixed assets is voluntary or involuntary, disposals rarely occur on the first or last day of an accounting period. Therefore, the disposal of property, plant, and equipment usually require two journal entries:
1. An entry to record depreciation expense up to the date of the disposal.
2. An entry to:
-Remove the asset's book value (the cost of the asset and the related accumulated depreciation)
-Record a gain or loss on disposal of the asset, which is computed as the difference between the proceeds from the sale and the book value of the asset
True or False?