If a corporation sells certain capital equipment for more than its initial purchase price, the difference between the sale price and the purchase price is called a(n) ________.

Question

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The difference between the sale price and the purchase price of capital equipment is classified as a capital gain. This occurs when a corporation disposes of a long-term asset at a profit. Ordinary gains refer to profits earned from the ongoing operations of a business, while revenue gains are the amounts earned by a business from sales of goods or services. Abnormal gains are gains that are not expected or typical in the course of business operations.

If a Corporation Sells Certain Capital Equipment for More Than