Asked by Alexis WATKINS on Jun 30, 2024
Verified
When an asset is sold, a gain is reported that is equal to the amount that the
A) proceeds received exceed the carrying amount of the asset sold.
B) proceeds received exceed the original cost of the asset sold.
C) carrying amount exceeds the proceeds received for the asset sold.
D) proceeds received exceed the depreciable cost of the asset sold.
Gain Reported
The difference reported in financial statements when the sale price of an asset exceeds its book value.
Carrying Amount
The book value of an asset or liability on a company's balance sheet, calculated as its original cost minus depreciation, amortization, or impairment costs.
- Detect and document gains or losses resulting from the relinquishment of assets.
Verified Answer
HX
HUANG XINRUIJul 03, 2024
Final Answer :
A
Explanation :
A gain on the sale of an asset is recognized when the proceeds from the sale exceed the asset's carrying amount, which is its original cost minus any accumulated depreciation.
Learning Objectives
- Detect and document gains or losses resulting from the relinquishment of assets.