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

Name: If an asset is sold for a price above its book value, the difference is considered taxable income to the firm.
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Quizplus · Accepted Answer

When an asset is sold for a price above its book value, the difference between the selling price and the book value is referred to as a capital gain. Capital gains are considered taxable income to the firm and need to be reported on tax returns. Therefore, option A is true.

If an Asset Is Sold for a Price Above Its