Losses on the cash sales of property, plant, and equipment:

a. Are reported on a net-of-tax basis if material.

b. Are part of cash flows from operations.

c. Are the excess of the book value over the cash proceeds.

d. Are the excess of the cash proceeds over the book value of the assets sold.

Question

Business

Titan

11 February, 09:48

Losses on the cash sales of property, plant, and equipment:

a. Are reported on a net-of-tax basis if material.

b. Are part of cash flows from operations.

c. Are the excess of the book value over the cash proceeds.

d. Are the excess of the cash proceeds over the book value of the assets sold.

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Answers (1)

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Mariela Clarke · Answer 1

c. Are the excess of the book value over the cash proceeds.

Explanation:

The property, plant, and equipment are classified as the fixed assets which are reported in the asset side of the balance sheet

If the cash sales of property, plant, and equipment are sold more than the book value then it would be the gain.

But if the cash sales of property, plant, and equipment is sold less than the book value than it would be the loss to the company.

Losses on the cash sales of property, plant, and equipment:a. Are reported on a net-of-tax basis if material.b. Are part of cash flows from operations.c. Are the excess of the book value over the cash proceeds.d. Are the excess of the cash proceeds over the book value of the assets sold.

Losses on the cash sales of property, plant, and equipment:

a. Are reported on a net-of-tax basis if material.

b. Are part of cash flows from operations.

c. Are the excess of the book value over the cash proceeds.

d. Are the excess of the cash proceeds over the book value of the assets sold.