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ExtremeBDS [4]
3 years ago
14

When an asset is sold, a gain occurs when the:______.

Business
1 answer:
Serhud [2]3 years ago
5 0

Answer:

a. sale price exceeds the book value of the asset sold.

Explanation:

The gain recognized when the sale price is exceeded than the book value i.e

Gain recognized = Sale price - book value

where

Sale price is the selling price of the asset

And, the book value is the carrying value of the asset

Book value = Acquired value of an asset - accumulated depreciation

Hence, the option a is correct

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