If an asset is sold for more than its tax basis: a loss results and additional...
If an asset is sold for more than its tax basis:
|
a loss results and additional taxes are incurred |
|
a gain results and additional taxes are incurred |
|
a loss and tax savings result |
|
a gain and tax savings result |
Homework Answers
The correct answer is
A gain result and additional taxes are incurred
Explaination
if asset is sold more than its tax basis, so it means profit has been generated, so it means taxes has to be paid on profit, so additional taxes are incurred.
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