When a firm sells an asset for ____, it realizes a capital gain and must pay income taxes on it.

A) book value
B) less than book value
C) more than book value
D) any amount

Capital Gain

The profit earned from the sale of an asset when the selling price exceeds its purchase price.

Book Value

The net asset value of a company, calculated as total assets minus intangible assets (patents, goodwill) and liabilities.

Income Taxes

Taxes on an individual's or corporation's income imposed by the government.