If an asset is sold for a price above its book value and the asset pool ends,the difference is considered taxable income for the firm.

Question

Quizplus · Accepted Answer

If an asset is sold for a price above its book value, the difference (which is also known as a capital gain) is considered taxable income for the firm. However, the statement about the asset pool ending is not relevant in determining whether it is taxable income.

If an Asset Is Sold for a Price Above Its