When a depreciable asset is sold, a tax gain or tax loss on disposal is calculated, based on the book value of the asset at the time of disposal. If a ________ has occurred, a ________ is recorded
A) gain, tax credit
B) gain, tax reduction
C) loss, tax credit
D) loss, tax increase
Answer: C
Explanation: C) When a depreciable asset is sold, a tax gain or tax loss on disposal is calculated, based on the book value of the asset at the time of disposal. If a gain has occurred, taxes are incurred. If a loss has occurred, a tax credit or tax reduction is recorded.
You might also like to view...
Discuss the steps in interpreting a multiple regression output.
What will be an ideal response?
Which of the following is NOT a characteristic of management decisions for which decision analysis techniques apply?
a. They must be important. b. They are probably unique. c. They are usually deterministic. d. They are complex.
Find a 95% confidence interval for the total amount of the 800 accounts receivable
A) 70,421 ± 3,836.24 B) 70,421 ± 4,589.73 C) 70,421 ± 2,057.41 D) 70,421 ± 5,657.48
The legal precedent that evolves from legal opinions issued by judges in deciding a case and guides judges in deciding similar cases in the future is referred to as:
A. Business law B. Tort law C. Common law D. Statutory law