If an Asset Is Sold for More Than Its Tax

question 21

Multiple Choice

If an asset is sold for more than its tax written down value,

• A)a gain results and additional taxes are incurred.
• B)a gain and tax savings result.
• C)a loss results and additional taxes are incurred.
• D)a loss and tax savings result.

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Definitions:

Incentive

Something that motivates or encourages an individual to take action or to perform a behavior.

External Goal

An objective or target that an individual aims to achieve, which is set outside of themselves, such as career achievements or material possessions.

Motivate Behaviour

The process of influencing or stimulating an individual to act in a certain way or pursue particular goals.

Biological Motives

Innate drives arising from biological needs that are critical for the survival and reproduction of an organism.