There is neither a gain nor a loss on the sale of a depreciable asset for an amount exactly equal to its:

A) acquisition cost.
B) tax book value.
C) opportunity cost.
D) historical cost.

Question

There is neither a gain nor a loss on the sale of a depreciable asset for an amount exactly equal to its:A) acquisition cost.B) tax book value.C) opportunity cost.D) historical cost.

Declan Rustay · Accepted Answer

Final Answer : B, Explanation :  When a depreciable asset is sold for an amount equal to its tax book value, there is no gain or loss because the sale price is equal to the value at which the asset is carried on the books for tax purposes. This is because tax depreciation expense is taken based on the tax book value of the asset, not its acquisition cost or historical cost. Therefore, the correct answer is B.

There is neither a gain nor a loss on the sale of a depreciable asset for an amount exactly equal to its:

A) acquisition cost.
B) tax book value.
C) opportunity cost.
D) historical cost.

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Learning Objectives

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