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.

Question

Quizplus · Accepted Answer

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.

When an Asset Is Sold, a Gain Is Reported That