29 Losses on the sale of longterm assets for cash A Are the

29. Losses on the sale of long-term assets for cash: A. Are the excess of the book value over the cash received. B. Are recorded as a credit. C. Are reported on a net-of-tax basis if material. D. Are the excess of the cash received over the book value.

Solution

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

Let\'s take an example. You have a machine of book value $50,000 and you sold it $40,000. So the loss on the sale of long term assets is $10,000 ($50,000 - $40,000).

so the correct option is option A.

hope the example will help you.