If a Depreciable Asset Is Sold

question 159

Multiple Choice

If a depreciable asset is sold:

• A)there is no tax consequence.
• B)the sale price minus the book value is added to the firm's income and is taxed at the firm's long term capital gain tax rate.
• C)the sale price is added to the firm's income and is taxed at the firm's marginal tax rate.
• D)the sale price minus the book value is added to the firm's income and is taxed at the firm's marginal tax rate.
• E)the sale price minus the book value is added to the firm's income and is taxed at the firm's average tax rate.

---

Definitions:

2005 Amendments

Refers to specific changes made to a law, regulation, or other legal documents in the year 2005, which could vary depending on the context in which they are mentioned.

Chapter 14

A specific chapter within a book or legal code, which would depend on the context of the book or code in question.

Family Farmers

Family farmers refer to those individuals or families owning and managing agricultural operations, typically focused on producing food and other agricultural products at a smaller scale compared to corporate farms.

Bankruptcy Code

Federal laws governing the process through which individuals or entities unable to meet their financial obligations can obtain relief from debts.