Saved☆ 009HelpSave & Exit SubmitTo calculate a gain or loss on the sale of an asset, the proceeds from the sale are reduced by which of the following?Multiple ChoiceОTax basis of the propertySelling expensesОAmount realizedОTax basis of the property and selling expensesAll of these choices are correct.

When calculating a gain or loss on the sale of an asset, the proceeds from the sale are reduced by…

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4MC: Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers...

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Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers to the process of converting assets to expenses. B. Only the purchase price of the asset is capitalized. C. Capitalizing a cost means to record it as an asset. D. Capitalizing costs results in an immediate decrease in net income.
When all information on an asset has been incorporated into the asset's price, we say that the information has been ________. Multiple Choice Priced out. Indicated. Sorted out. Costed out. Uncovered.
The difference between book value of the asset with the proceeds received from its sale, will resultin Select one a. Always a gain b Depreciable Cost c Cain or loss d. Always a loss
1 Select the best answer for the question. 11. What is the process by which the cost of a fixed asset over its estimated useful life is periodically charged to an expense a O A. Hypothecation B. Accretion C. Liquidation D. Depreciation O Mark for review (Will be highlighted on the review page) > O Hi Fu
Net purchase price of an asset plus all reasonable and necessary expenditures to get it in place and ready for use is known as a . Acquisition cost b . Depreciable cost Oc None of the given options • d . Cost of an asset
Accounting When you dispose of a property and end up with a gain or a loss, it may be treated in one of 2 ways. What are they? When you dispose of personal-use property, you usually do not have a capital gain. Why not? To calculate any capital gain or loss, you need to know the following 3 amounts: the proceeds of disposition the adjusted cost base (ACB) the outlays and expenses incurred to sell your property Using these three amounts, what is the formula to calculate your capital gain or loss? 4. Capital Gains are reported on Schedule 3. What line does the sale of Personal Use Property go on?
Which of the following answers is the correct formula for determining the historical cost of an asset? Select one: O a. historical cost = original value of the asset - accumulated depreciation. O b. historical cost = the basic purchase price of the asset minus any other costs necessary to prepare the asset ready for use. O c. historical cost = the basic purchase price of the asset plus any other costs necessary to prepare the asset ready for use. O d. historical cost = the basic purchase price of the asset only.
All amounts paid to acquire a long lived-asset and to get it ready for its intended use are referred to as OA. net book value OB. the cost of an asset OC salvage value O D. immediate expenses BEE
Revenue Expenditures are Select one: O a. Expenses related to Business Operation O b. None of the these O c. Have no direct effect on profit O d. Expenses incurred when purchasing non- current assets
26. What is the general formula for calculating the gain or loss realized on the sale or other disposition of property? Include in your answer a discussion of how to calculate each "element" of the formula for calculating gain or loss realized, assuming that the property is purchased at original cost. Also, discuss common circumstances where the basis of property is "adjusted" over time.
( a ) calculate the cost that should be allocated to each asset purchased ( b ) Jounal the purchase of the real estate
The generally accepted accounting principle that supports recording the value of a property at the purchase price when the market value is higher is the: O monetary principle O going concern principle O conservatism principle O cost principle

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