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When selling a fixed asset, the seller recognizes a gain or loss for the difference between the amount received and the ______ value of the asset sold.

User ProXicT
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Answer:

Book value

Step-by-step explanation:

Book value refers to the worth of an asset in the financial records of its owner. It is the original cost of the asset minus its accumulated depreciation. The book value is the same as the carrying value in the balance sheet.

Assets decline in value due to the passage of time, usage, and corrosion. Though depreciation, the value of the asset is gradually reduced in its books. Usually, depreciation happens until the end of the asset's useful life.

If an asset is sold before the end of its useful life, a comparison will be made between the amount received and its book value. If the book value is higher than the amount received, a loss will be recorded.

User Eremite
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