There is neither a gain or a loss on the sale of a depreciable asset for an amount exactly equal to its .

Question

Quizplus · Accepted Answer

When a depreciable asset is sold for an amount exactly equal to its tax book value, there is neither a gain nor a loss. This is because the tax book value represents the net amount of the asset after accounting for depreciation expenses. If the selling price is equal to the tax book value, then the seller is recovering the entire amount originally invested in the asset, which means there is no gain or loss. The other options (A, C, and D) do not necessarily have a direct relation to the sale price of a depreciable asset, and therefore are not relevant to this question.

There Is Neither a Gain or a Loss on the Sale