If a fixed asset is sold and the book value is less than cash received,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)Gains and losses are not to be recognized upon the sell of fixed assets.

Question

Quizplus · Accepted Answer

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

If a Fixed Asset Is Sold and the Book Value