If You Sell an Asset That You Owned for Less

question 107

Short Answer

If you sell an asset that you owned for less than 12 months for more than you paid for it,you will report a(n)________.

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on the current price to sell an asset or settle a liability in an orderly transaction.

Controlling Influence

The power or authority to govern or direct the management and policies of another entity without necessarily having majority ownership.

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.

Equity Changes

Refers to variations in the owners' equity in a business over time due to earned income, distribution of profits, investments, and withdrawals.