Gains and losses in financial statements and tax returns
Explain why the amount of gain or loss resulting from the sale of a depreciable asset usually differs between the seller's financial statements and income tax return.In which of these accounting reports is the gain usually larger (or the loss smaller)? Explain your reasoning.

Question

Quizplus · Accepted Answer

The Answer of Gains and losses in financial statements and tax returns
Explain why the amount of gain or loss resulting from the sale of a depreciable asset usually differs between the seller's financial statements and income tax return.In which of these accounting reports is the gain usually larger (or the loss smaller)? Explain your reasoning.

Gains and Losses in Financial Statements and Tax Returns