A tax liability is created upon the sale of an asset whenever:Select one:a.the firm is profitable.b.the asset has been partially depreciated.c.the corporation keeps two sets of books.d.the asset's market value exceeds its book value.Clear my choice

Fill in the Blank QuestionFill in the blank question. liability means that the owners of the business are responsible for its losses only up to the amount they invest.

Depreciation is generated due toGroup of answer choicesIncrease in the value of liabilityWear and tearDecrease in capitalDecrease in the value of assets

The liability of a sole proprietor is:a) Limited to the capital investedb) Limited to the extent of his sharec) Unlimitedd) Limited to the profits

An entity has revalued its property and has recognized the increase in the revaluation reserve in its financial statements. The carrying value of the property was GHS8 million, and the revalued amount was GHS10 million. Tax base of the property was GHS6 million. In the country, the tax rate applicable to profits is 35% and the tax rate applicable to profits made on the sale of property is 30%. Where will the tax liability be recognized and at what amount?a.In statement of recognized income and expense at GHS1.4 million.b.In equity at GHS1.2 million.c.In the income statement at GHS600,000.d.In retained earnings at GHS700,000.

Once an asset's book value equals its salvage value, depreciation stops.Group of answer choicesTrueFalse