A company recognizes a loss on the income statement whenever it sells a fixed asset for less than its original cost.

Name: A company recognizes a loss on the income statement whenever it sells a fixed asset for less than its original cost.
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Question

Quizplus · Accepted Answer

A company recognizes a loss on the income statement when it sells a fixed asset for less than its book value, not its original cost. The book value is the original cost minus accumulated depreciation.

A Company Recognizes a Loss on the Income Statement Whenever