A capital gain arises when:a.Proceeds from the sale of an asset are less than the base cost an asset.b.Proceeds from sale of an asset are equal to the base cost of an asset.c.A personal use asset is disposed.d.Proceeds from a sale of an asset are greater than the base cost of an asset.

If an asset exchange has commercial substance, a gain or loss is recorded based on the difference between the value of the asset given up and the market value of the asset received.

A gain or loss on disposal of a plant asset is determined by comparing theGroup of answer choicesoriginal cost of the asset with the proceeds received from its sale.replacement cost of the asset with the asset's original cost.book value of the asset with the proceeds received from its sale.book value of the asset with the asset's original cost.

Which of the following does not ultimately result in a capital gain or loss?Multiple ChoiceSale of a personal use assetSale of inventoryGain on equipment used in a trade or business and held for less than one year, if it is the only asset sale during the yearSale of capital stock in another companyNone of the choices are correct.

An entity purchased property for $6 million on 1 July 20X3. The land element of the purchase was $1 million. The expected life of the building was 50 years and its residual value nil. On 30 June 20X5 the property was revalued to $7 million, of which the land element was $1.24 million and the buildings $5.76 million. On 30 June 20X7, the property was sold for $6.8 million. What is the gain on disposal of the property that would be reported in the statement of profit or loss for the year to 30 June 20X7? A Gain $40,000 B Loss $200,000 C Gain $1,000,000 D Gain $1,240,000

Which of the following situations will result in recognizing a gain on sale of a plant asset?Multiple choice question.An asset that cost $5,000 with accumulated depreciation of $3,000 is sold for $1,500.A fully depreciated asset is sold for $1,000.An asset with book value of $2,000 is sold for $2,000.An asset with a book value of $2,000 is sold for $1,500.A fully depreciated asset is discarded.