When the Purchase Price of an Asset Is Less Than

question 105

Multiple Choice

When the purchase price of an asset is less than its sale price, then there is a

• A) budget deficit.
• B) corporate income tax.
• C) capital gain.
• D) capital loss.

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Definitions:

Equal Division

The process of dividing something into parts or portions that are as nearly equal as possible.

LLP

Limited Liability Partnership, a partnership in which some or all partners have limited liabilities, protecting personal assets from debts and liabilities of the partnership.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenues.

Capital Account Balance

The net amount of funds invested in a business by its owners, plus retained earnings or minus accumulated losses.