A firm sells its headquarters building at a gain. This means that at the time of sale
A)the cash or other assets received were greater than the building's book value.
B)the cash or assets received in a transaction were less than the carrying value of the assets given up.
C)the cash or other assets received were greater than the building' carrying value.
D)the cash or assets received in a transaction were less than the building's book value.
E)Both choices a and c are correct.

Question

Quizplus · Accepted Answer

A gain on the sale of an asset occurs when the cash or other assets received are greater than the carrying value (or book value) of the asset. Therefore, choices a and c are both correct.

A Firm Sells Its Headquarters Building at a Gain