If an asset is sold for book value, the gain on the sale is composed of two parts: a capital gain and accumulated depreciation.

Name: If an asset is sold for book value, the gain on the sale is composed of two parts: a capital gain and accumulated depreciation.
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If an asset is sold for book value, there is no gain or loss on the sale. The sale price equals the book value, meaning that the asset has not appreciated or depreciated in value since it was acquired.

If an Asset Is Sold for Book Value, the Gain