Gains on the cash sales of property, plant, and equipment are: 4) Are the excess of the cash proceeds over the book value of the asset sold.
Gains on the cash sales of property, plant, and equipment are generally the excess of the cash proceeds over the book value of the asset sold.
This gain represents the profit earned from selling the asset for more than its carrying (book) value. It is typically reported as part of cash flows from investing activities in the statement of cash flows, not as part of cash flows from operations.
Additionally, gains on sales are reported on a gross basis before taxes, rather than on a net-of-tax basis.
Complete Question:
Gains on the cash sales of property, plant and equipment:
1) Are the excess of the book value over the cash proceeds.
2) Are part of cash flows from operations.
3) Are reported on a net-of-tax basis if material.
4) Are the excess of the cash proceeds over the book value of the asset sold.