FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Q: Demonstrates the difference between depreciation costs as expenses and the cash flow generated by…
A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…
Q: With depreciation, the book value of a fixed asset usually ___ __ ___ with the asset's market value
A: Introduction: - Depreciation is a non-cash expense. Depreciation is charged on fixed asset over a…
Q: When applying the equity method, how is the excess of cost over book value accounted for? A) The…
A: The net asset on something like a statement of the financial statement is expressed as the amount by…
Q: What entry is made when selling a fixed asset?
A: Following entry is passed when selling the fixed assets:
Q: Which of the following is (are) acceptable valuation(s) for reporting of assets on the balance…
A: The objective of the question is to identify the correct methods of asset valuation for reporting on…
Q: GAAP provides guidelines for the inclusion of interest in the initial cost of a self-constructed…
A: 1.
Q: The adjusted basis of an asset is the original cost (or basis) plus capital recoveries less capital…
A: Adjusted basis: The amount of original cost, plus additional investments (capital expenditure) and…
Q: Cost of property asset minus accumulated depreciation is equal to net book value.   T/F
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Do I have to include depreciation when computing net present value?
A: Depreciation is said to be none cash expense so there is no out flow of cash when depreciation…
Q: The difference between book value of the asset with the proceeds received from its sale, will…
A: The book value of the asset is the cost of the asset less accumulated depreciation.
Q: According to the historical cost principle, assets are measured at the exchange price at the time…
A: Introduction: As per the historical cost principle is one of basic accounting principle, is a…
Q: A capital expenditure would be: Group of answer choices added to the cost of the asset ignored…
A: The Capital expenditure is that expenditure which is incurred for long term benefits. The benefits…
Q: Fixed assets are ordinarily presented on the balance sheet OO at their current market value under…
A: Fixed assets are ordinarily presented in balance sheet at their cost less accumulated depreciation.…
Q: The book value of an asset is computed as the asset's _____.
A: The assets can be defined as fixed assets and current assets.
Q: hat is the amount realized in a transaction? The gain on the sale of an asset The proceeds less the…
A: Capital gain is realized from the sale of fixed assets.
Q: An asset is said to be fully depreciated when:
A: An  provided economic benefit these are creating value of addition story enhance the profit…
Q: An impairment loss is recorded when capital asset's   1. net book value is higher than the amount it…
A: Impairment loss is excess of carrying amount of assets over its recoverable amount .  Recoverable…
Q: Which valuation method is dependent on a calculation of terminal value? a) DCF b) Comparable…
A: Option C is correct.
Q: The “carrying value” of a long term asset on the Balance Sheet represents: a. The net book value of…
A: Correct answer-option a:The net book value of the asset
Q: Assuming interest costs related to an asset qualify for interest capitalization, which of the…
A: Option 4 is correct The amount that should be capitalised is the lower of actual interest cost…
Q: e amortized cost for a financial asset
A: Amortized cost is the amount at which financial assets are reported on Balance Sheet.
Q: the equation for book value is: book value = cost of an asset minus its accumulated depreciation.…
A: Asset: Asset is a resource owned by a company from which future economic benefits are expected to…
Q: On the balance sheet date, the book value (or carrying value) of an asset should always equal the…
A: Book value of an asset is based on the cost of the asset and depreciation charged over time. ie,…
Q: Cost of property asset minus the residual value is equal to net book value.
A: Cost of Property -  It Includes the purchase Price of the Property. stamp duty, and other cost…
Question

The difference between book value of the asset with the proceeds received from its sale, will result in:

Expert Solution
Check Mark
Step 1

The book value of an asset is the value of the asset calculated by deducting the accumulated depreciation till the date from the cost price of the asset.

Step 2

The difference between book value of the assets with the proceeds received from its sale will result in either gain or loss.

When the selling price of the asset is more than the book value of the asset, then the difference in the prices will be a gain on sale of the asset.

When the selling price of the asset is less than the book value of the asset, then the difference in the prices will be a loss on sale of the asset.

bartleby

Step by stepSolved in 3 steps

Blurred answer
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
SEE MORE TEXTBOOKS