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

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When a corporation sells certain capital equipment for more than their initial purchase price, the difference between the sale price and the purchase price is called a capital gain. It is considered a profit for the corporation. Ordinary gain or loss is related to the everyday business operations of the corporation, while capital gain or loss is related to the sale of assets.

If a Corporation Sells Certain Capital Equipment for More Than