If the firm sells the intangible asset, it recognizes a gain or loss on the income statement, measured as the difference between the sales proceeds and the carrying value of the asset.

Question

Quizplus · Accepted Answer

When a firm sells an intangible asset, it must recognize any gain or loss on the income statement, calculated as the difference between the sales proceeds and the asset's carrying value, in accordance with accounting standards.

If the Firm Sells the Intangible Asset, It Recognizes a Gain