When a company sells a long-lived asset,stockholders' equity will change by the:
A)amount of the sale.
B)amount of the asset's book value.
C)amount of the asset's Accumulated Depreciation.
D)difference between the sales price and the asset's book value.

Question

Quizplus · Accepted Answer

A gain results if the proceeds are greater than the book value;a loss results if the proceeds are less than the book value.That gain (loss)will increase (decrease)stockholders' equity.

When a Company Sells a Long-Lived Asset,stockholders' Equity Will Change