A gain on sale of a plant asset occurs when the proceeds of the sale are greater than the

A) salvage value of the asset sold.
B) market value of the asset sold.
C) book value of the asset sold.
D) accumulated depreciation on the asset sold.

The book value of a plant asset is the original cost of the asset minus the accumulated depreciation on the asset. If the proceeds from the sale are greater than the book value, then a gain on the sale has occurred. Salvage value and market value are not relevant in determining the gain on sale. Accumulated depreciation is used to calculate the book value but does not provide information on the gain or loss on the sale.