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    Sale of depreciable asset

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    When a depreciable asset is sold:

    a gain arises if the sales proceeds exceed the net book value.
    a loss arises if the sales proceeds exceed the net book value.
    any cash received results in a gain.
    depreciation expense is adjusted so there is no gain or loss.

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    https://brainmass.com/business/accounting/sale-depreciable-asset-96979

    Solution Summary

    The solution explains the impact of a sale of a depreciable asset.

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