Question

Losses on the sale of long-term assets for cash:

A. Are recorded as a credit.

B. Are the excess of the cash received over the book value.

C. Are reported on a net-of-tax basis if material.

D. Are the excess of the book value over the cash received.

Answer 1

Answer: (D) Are the excess of the book value over the cash received

Step-by-step explanation:

The long term assets are mainly said to be sell in loss when, the actual selling price of the long termed investment are less than the value of the book and also the carrying value of the investment in books.

We can also find out the actual gain or loss as if cash receive are greater as compared to the assets vale of the book, then it is said to be gain. If cash receive are less as compared to the assets value of the book, then it is said to be loss.