Which of the Following Gains Does Not Result Solely in an Ordinary

question 76

Multiple Choice

Which of the following gains does not result solely in an ordinary gain or loss?

• A) Sale of equipment held for less than a year.
• B) Sale of inventory.
• C) Sale of equipment where the gain realized exceeds the accumulated depreciation.
• D) Sale of equipment where the accumulated depreciation exceeds the gain realized.
• E) None of these.

---

Definitions:

Double Declining Balance

A method of accelerated depreciation which doubles the depreciation rate of the straight-line method, resulting in higher depreciation expenses in the earlier years of an asset's life.

Intangible Assets

Non-physical assets that hold value, such as patents, trademarks, and goodwill.

Intangible Assets

Non-physical assets that possess value due to their intellectual or non-material nature, such as patents, trademarks, and goodwill.

Depreciation Method

A systematic approach used to allocate the depreciable amount of an asset over its useful life, such as straight-line or declining balance methods.