Gains on the cash sales of fixed assets:
A)Are the excess of the book value over the cash proceeds.
B)Are part of cash flows from operations.
C)Are reported on a net-of-tax basis if material.
D)Are the excess of the cash proceeds over the book value of the assets.

Question

Quizplus · Accepted Answer

Gains on the cash sales of fixed assets are calculated as the excess of cash proceeds over the book value of the assets. This gain is reported as part of cash flows from investing activities on the statement of cash flows. If the gain is material, it may be reported on a net-of-tax basis. Therefore, option D is the correct answer.

Gains on the Cash Sales of Fixed Assets