When an investment in equity securities is sold,the gain or loss is calculated by comparing proceeds from the sale with the book value of the investment on the date of sale.

Question

Quizplus · Accepted Answer

This statement is true. The gain or loss from the sale of equity securities is calculated by comparing the proceeds from the sale with the book value of the investment on the date of sale. The book value is the original cost of the investment adjusted for any dividends received or changes in market value.

When an Investment in Equity Securities Is Sold,the Gain or Loss