Asked by

Uttam Debnath
on Dec 01, 2024

verifed

Verified

There is a capital gain on the sale of an asset for:

A) more than its original cost.
B) more than its book value but less than its original cost.
C) a and b
D) None of the above

Capital Gain

The profit earned from the sale of assets like stocks, bonds, or real estate, which exceeds the purchase price.

Book Value

For a company, the value of equity, equal to total assets minus total liabilities. Book value can be stated in total or per share. For an asset, book value is the net of original cost minus accumulated depreciation, and is generally referred to as net book value.

Original Cost

The initial monetary value of an asset or investment at the time of its acquisition.

  • Apprehend the significance of taxes and depreciation on the monetary progress of projects.
  • Identify the significance of salvage value and recovery of working capital in the final year cash flow of a project.
verifed

Verified Answer

JM
Jessica MooreDec 08, 2024
Final Answer:
Get Full Answer