If a Fixed Asset Is Sold and the Book Value

question 44

Multiple Choice

If a fixed asset is sold and the book value is less than cash received,the company must

• A)recognize a loss on the income statement under other expenses.
• B)recognize a loss on the income statement under operating expenses.
• C)recognize a gain on the income statement under other revenues.
• D)Gains and losses are not to be recognized upon the sell of fixed assets.

---

Definitions:

Married Taxpayers

Individuals who are legally married and may choose to file income tax returns jointly or separately.

Dependents

Individuals, typically family members, who rely on another person, usually the primary earner, for financial support.

Taxable Income

The portion of income upon which tax is owed, calculated by subtracting allowable deductions from gross income.

Married Taxpayers

Individuals who are married and may choose to file joint or separate income tax returns.