A gain is recorded on the sale of fixed assets when
A)the asset is sold for a price less than its book value.
B)the asset's book value is less than the cash received.
C)accumulated depreciation is less than the cash received.
D)None of the above.

Question

Quizplus · Accepted Answer

A gain is recorded on the sale of fixed assets when the cash received is greater than the book value of the asset, which includes accumulated depreciation. Therefore, option B is the correct choice as it states the book value is less than the cash received. Options A and C are incorrect as they state conditions where the cash received is less than the book value or accumulated depreciation. Option D is not the correct choice as there is a correct answer among the choices.

A Gain Is Recorded on the Sale of Fixed Assets