There is neither a gain nor a loss on the sale of a depreciable asset for an amount exactly equal to its ____.

Question

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When a depreciable asset is sold for an amount exactly equal to its tax book value, there is neither a gain nor a loss on the sale because the tax book value represents the amount of depreciation that has already been taken for tax purposes. The acquisition cost (A) and historical cost (D) may be different from the tax book value due to depreciation deductions, and the opportunity cost (C) is not relevant to the calculation of gain or loss on the sale of an asset.

There Is Neither a Gain nor a Loss on the Sale