Question

Gain or loss is determined by comparing the cash received and the market value of any...

Gain or loss is determined by comparing the cash received and the market value of any other asset received with the historical cost of the asset disposed of. True False

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: FALSE

Gain or loss is determined by comparing the cash received and the market value of any other asset received with the Book Value of the asset disposed of.

Historic Value is the cost of purchasing the asset, taxes, commision and any other charges to ready the assets for the intended use. Book Value is the historic cost adjusted to depreciation every year. There will be gain when the cash received and the market value of any other asset received is more than the book value and a loss when it is less than the book value.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A gain or loss on disposal of a fixed as is determined by comparing the Group...
A gain or loss on disposal of a fixed as is determined by comparing the Group of answer choices fair market value of the asset with the asset’s original cost the book value of the asset with the cash received from the sale historical cost of the asset with the cash received from the sale accumulated depreciation of the asset with the cash received from the sale
To determine whether there is a gain or loss on a disposal of a plant​ asset,...
To determine whether there is a gain or loss on a disposal of a plant​ asset, the​ asset's original cost is compared to the cash received and any other assets received for disposing of the plant asset. True or False
the gain or loss from disposal of property, plant and equipment is the difference between an...
the gain or loss from disposal of property, plant and equipment is the difference between an asset's book value and the value received. True or False TrueFalse
XYZ Co exchanged its asset A for Company BCD's asset B and received cash as part...
XYZ Co exchanged its asset A for Company BCD's asset B and received cash as part of the exchange. The exchange has commercial substance. XYZ Co. should defer the gain in this transaction by reducing the cost of the new asset (asset B). True or False?
Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Lynch Company owns and...
Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Lynch Company owns and operates a delivery van that originally cost $47,900. Lynch has recorded straight-line depreciation on the van for four years, calculated assuming a $5,000 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the fourth year, at which time Lynch disposes of this van. a. Compute the net book value of the van on...
Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Lynch Company owns and...
Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Lynch Company owns and operates a delivery van that originally cost $46,400. Lynch has recorded straight-line depreciation on the van for four years, calculated assuming a $5,000 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the fourth year, at which time Lynch disposes of this van. a. Compute the net book value of the van on...
Choose any 2 stocks in any market, and alsothe market index for that market (e.g. S&P,...
Choose any 2 stocks in any market, and alsothe market index for that market (e.g. S&P, NASDAQ, etc.) Collect historical prices monthly for 5 years, and compute the returns Write a shorts ummary of your results, comparing the two stocks to each other
On January ?2, 2017?, Again Clothing Consignments purchased showroom fixtures for $ 14 comma 000 ?cash,...
On January ?2, 2017?, Again Clothing Consignments purchased showroom fixtures for $ 14 comma 000 ?cash, expecting the fixtures to remain in service for five years. Again has depreciated the fixtures on a? double-declining-balance basis, with zero residual value. On September 30 comma 2018?, Again sold the fixtures for $ 7 comma 300 cash. Record both depreciation expense for 2018 and sale of the fixtures on September 30?, 2018. ?(Record debits? first, then credits. Select the explanation on the last...
If the market value is lower than the cost of trading or available-for-sale investments, the investment...
If the market value is lower than the cost of trading or available-for-sale investments, the investment is written down to market only if the decline is permanent and not temporary. Question 12 options: a) True b) False Question 13 (1 point) Saved If the market value is lower than the cost of a held-to-maturity investment, the investment is written down to market only if the decline is permanent and not temporary. Question 13 options: a) True b) False Question 14...
etermine the realized, recognized, and postponed gain or loss, as well as the new basis for...
etermine the realized, recognized, and postponed gain or loss, as well as the new basis for each of the following qualified like-kind exchanges: If an amount is zero, enter "0". Adjusted Basis of Old Asset Boot Given Fair Market Value of New Asset Boot Received a. $13,000 $0 $18,000 $6,000 b. 26,000 5,000 24,000 0 c. 90,000 22,000 63,000 13,000 d. 5,000 0 11,000 0 e. 38,000 0 49,000 2,000 f. 65,000 0 58,000 0
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT