Gains on the sale of long-term assets for cash:
A)Are the excess of the book value over the cash received.
B)Are recorded as a debit.
C)Are reported on a net-of-tax basis if material.
D)Are the excess of the cash received over the book value.

Question

Quizplus · Accepted Answer

Gains on the sale of long-term assets for cash are the excess of the cash received over the book value, not the other way around. Therefore, option D is the correct choice.

Gains on the Sale of Long-Term Assets for Cash