When Selling Property, Plant, and Equipment for Cash

Multiple Choice

When selling property, plant, and equipment for cash:

A) The seller recognizes a gain or loss for the difference between the cash received and the fair value of the asset sold.
B) The seller recognizes a gain or loss for the difference between the cash received and the book value of the asset sold.
C) The seller recognizes losses, but not gains.
D) None of these answer choices are correct.