Mergers and Acquisitions – A beginners guide
Gain or loss on the sale of a plant asset is always recognized. To determine the amount of gain or loss if any, the formula is: Sales Price (SP) – Book Value (BV). If the answer is a positive number (greater than (>) zero), then there is a gain on sale. With the following example: $8,000 (SP) -$5,000 (BV) = +$3,000.An Example entry: ................
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