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 calculated as the difference between the proceeds received and the carrying amount (book value) of the asset at the time of sale.

When an Asset Is Sold, a Gain Is Reported That