A firm sells its headquarters building at a gain. This means that at the time of sale
A)the cash or other assets received were greater than the building's book value.
B)the cash or assets received in a transaction were less than the carrying value of the assets given up.
C)the cash or other assets received were greater than the building' carrying value.
D)the cash or assets received in a transaction were less than the building's book value.
E)both choices a and c are correct.

Question

Quizplus · Accepted Answer

Selling a building at a gain means that the proceeds from the sale exceed the building's book or carrying value, which are terms used interchangeably to represent the asset's value on the balance sheet after accounting for depreciation and amortization. Both choices A and C describe this scenario accurately, making E the correct answer.

A Firm Sells Its Headquarters Building at a Gain