The tax treatment regarding the sale of existing assets which are depreciable and used in business and are sold for less than the book value results in
A) a capital gain and a recapture.
B) a capital gain.
C) a terminal loss.
D) a recapture.

Question

Quizplus · Accepted Answer

When depreciable assets used in business are sold for less than their book value, it results in a terminal loss, which can be used to offset other income.

The Tax Treatment Regarding the Sale of Existing Assets Which