To calculate a gain or loss on the sale of an asset, the proceeds from the sale are reduced by which of the following?

Question

Quizplus · Accepted Answer

To calculate the gain or loss on the sale of an asset, the tax basis of the property and selling expenses must be subtracted from the proceeds received from the sale. This is because the tax basis represents the original cost of the asset and selling expenses are expenses incurred in the process of selling the asset, both of which reduce the amount of profit from the sale. Therefore, choice B is the correct answer.

To Calculate a Gain or Loss on the Sale of an Asset