If a company sells its equipment for more than it is valued on the balance sheet, the difference is called a(n)

Name: If a company sells its equipment for more than it is valued on the balance sheet, the difference is called a(n)
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

When a company sells equipment for more than its book value (value on the balance sheet), the difference between the selling price and the book value is called a gain. This gain is recognized as income on the income statement and increases the company's net income.

If a Company Sells Its Equipment for More Than It