Which of the following statements is NOT true regarding the recognition of gains or losses on the disposal of PPE? The gain or loss is calculated as the cash proceeds (receipts) less the historical cost of the asset. The gain or loss is calculated as the cash proceeds (receipts) less the book value of the asset. Accumulated depreciation should be updated through the date of disposal before calculation of the gain or loss. The journal entry at disposal should ensure that both the cost of the asset and accumulated depreciation are removed from the balance sheet. QUESTION 9 Which statement is NOT true regarding depreciation methods? Most companies used an accelerated method of depreciation for property, plant and equipment because it more accurately matches expenses to the use of an asset. An accelerated method of depreciation will yield higher expenses early in the life of an asset. A straight-line depreciation method is most common because it provides a stable depreciation expense and is easiest to apply. The Sum of the Years' Digits method will give you a lower ending book value than a straight line method during the first year of an asset's life