Atlas Corporation sold a used machine for less than its carrying value.This transaction is a(n)________.
A)revenue
B)expense
C)gain
D)loss

Question

Quizplus · Accepted Answer

When a company sells a fixed asset, such as a machine, for less than its carrying value, it results in a loss. A loss is recognized as a separate line item on the income statement and is part of the calculation of the net income (or net loss) for the period. The other options (revenue, expense, and gain) do not apply in this scenario.

Atlas Corporation Sold a Used Machine for Less Than Its