The Sale of an Ordinary Asset for Its Book Value

question 33

Multiple Choice

The sale of an ordinary asset for its book value results in

• A) no tax benefit.
• B) recaptured depreciation.
• C) a capital gain.
• D) an ordinary tax benefit.

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Definitions:

Motion

The process or act of relocation or movement.

Debris Flow

A rapid downhill movement of a mixture of water, soil, and rock, often triggered by heavy rainfall or rapid snowmelt, behaving much like a river of concrete.

Rock Avalanche

A rapid, massive flow of rock debris down a slope, typically triggered by seismic activity or the undercutting of a mountain's base.

Rock Fall

A rock fall refers to the rapid descent of rock from a steep cliff or mountainside, often triggered by natural processes like weathering or human activities.