If a fixed asset is sold and the book value of the asset is less than its selling price,the company must:
A)recognize a loss on the income statement under other expenses.
B)recognize a loss on the income statement under operating expenses.
C)recognize a gain on the income statement under other revenues.
D)recognize a gain on the income statement under revenues.

Question

Quizplus · Accepted Answer

When a fixed asset is sold for more than its book value, the company recognizes a gain, which is typically reported under other revenues on the income statement.

If a Fixed Asset Is Sold and the Book Value