To determine if there is a gain or loss on the sale of an asset,you must compare:

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To determine if there is a gain or loss on the sale of an asset, you compare the sales price with the carrying amount of the asset. The carrying amount is the original cost of the asset, minus any accumulated depreciation or amortization up to the date of sale. Residual value and residual cost are not relevant in determining gain or loss on the sale of an asset.

To Determine If There Is a Gain or Loss on the Sale