Question

The tax treatment regarding the sale of existing assets that are sold for more than the book value but less than the original purchase price results in a(n) ________.

Answer 1

Answer:

capital gain tax liability

Explanation:

Capital gain tax is defined as the type of tax that is paid when the owner of an investment or asset makes a profit from its sale.

For example when the assets are sold for more than the book value but less than the original purchase price, there is a profit made that is called capital gain.

The tax applied to this capital gain is called capital gain tax liability.