A gain on the sale of a long-term asset is recorded when cash proceeds are ________.
A)less than the book value of the assets sold
B)less than the historical cost of the asset sold
C)less than the accumulated depreciation
D)greater than the book value of the asset sold

Question

Quizplus · Accepted Answer

A gain on the sale of a long-term asset is recorded when cash proceeds are greater than the book value of the asset sold. Book value is the historical cost of the asset minus accumulated depreciation. If cash proceeds are less than the book value, then a loss on the sale of the asset is recorded instead of a gain.

A Gain on the Sale of a Long-Term Asset Is