The tax treatment regarding the sale of existing assets which are sold for their book value results in
A) recaptured depreciation taxed as ordinary income.
B) an ordinary tax benefit.
C) a capital gain and recaptured depreciation taxed as ordinary income.
D) no tax benefit or liability.

Question

Quizplus · Accepted Answer

When assets are sold for their book value, there is no gain or loss to be recognized, so there is no tax benefit or liability.

The Tax Treatment Regarding the Sale of Existing Assets Which