When an Asset Is Sold for Less Than Its Acquisition

When an asset is sold for less than its acquisition cost but for more than its net book value:

A) the difference between the proceeds of disposition and the asset's net book value is reported on the financial statements as a gain on disposal.
B) the difference between the proceeds of disposition and the asset's net book value will generate a tax saving.
C) the difference between the proceeds of disposition and the asset's net book value will generate capital gains tax.
D) the difference between the proceeds of disposition and the asset's net book value will have no effect on the financial statement as all assets are shown as their historical cost less amortization.