If an asset is sold for less than its book value, the loss on the sale may be used to offset ordinary operating income.

Name: If an asset is sold for less than its book value, the loss on the sale may be used to offset ordinary operating income.
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Question

Quizplus · Accepted Answer

This statement is true. A loss on the sale of an asset can be used to offset ordinary operating income for tax purposes. This is known as a capital loss and can provide tax benefits to the company.

If an Asset Is Sold for Less Than Its Book