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It's a revenue. However, it's not a "Sales revenue", it's a "Other revenue".
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When an asset is sold a gain occurs when the?
Gain on sale of asset is occured when actual value of asset is less then the sale value of asset.
When you sell an asset at a price higher than the original cost of asset how is it treated in the books?
If it's a fixed asset, it's treated as a gain. The amount of gain is booked in the "Gain on Sale of Assets" revenue account (or something similar). The typical entry would be: Debit Cash (or Accounts Receivable) Credit Fixed Assets (or whatever account held the asset you're selling) Debit Accumulated Depreciation (if your asset had any A/D) Credit Gain on Sale If you're talking about selling inventory, that's a different matter.
What is the difference between capital income and revenue income?
Revenue Income:which is earned or generated by sales of goods or services.Capital Income:Cash or goods used to generate income by investing in business or other property.Example:Investment in shares and gain on sale of asset.
Is Proceed of sale An asset or liability?
no, it can be capital gain or loss
Is merchandise inventory considered an asset?
Yes merchandise inventory is asset for business which company maintain for sale purpose and to earn revenue.
When an asset is sold a gain occurs when the?
Gain on sale of asset is occured when actual value of asset is less then the sale value of asset.
When you sell an asset at a price higher than the original cost of asset how is it treated in the books?
If it's a fixed asset, it's treated as a gain. The amount of gain is booked in the "Gain on Sale of Assets" revenue account (or something similar). The typical entry would be: Debit Cash (or Accounts Receivable) Credit Fixed Assets (or whatever account held the asset you're selling) Debit Accumulated Depreciation (if your asset had any A/D) Credit Gain on Sale If you're talking about selling inventory, that's a different matter.
Where do gain of sale of land go on an income statement?
Loss on sale of land is added back to net income in operating activities and sale of land is shown under investing activity as a reduction in amount.
What is the journal entry for gain on sale of land?
[Debit] Cash / bank xxxx [Debit] Accumulated Depreciation xxxx [Credit] Asset xxxx [Credit] Gain on sale of asset [balancing figure) xxxx
What is the difference between capital income and revenue income?
Revenue Income:which is earned or generated by sales of goods or services.Capital Income:Cash or goods used to generate income by investing in business or other property.Example:Investment in shares and gain on sale of asset.
Is inventory considered an asset?
Yes merchandise inventory is asset for business which company maintain for sale purpose and to earn revenue.
Is Proceed of sale An asset or liability?
no, it can be capital gain or loss
Is merchandise inventory considered an asset?
Yes merchandise inventory is asset for business which company maintain for sale purpose and to earn revenue.
Is a deferred gain an asset in accounting?
No. A deferred gain is shown as a liabilty. If it had not been deferred it would be shown as capital. Whatever is received by the seller is an asset (cash or note receivable, etc). Since this new asset is more than the basis of the asset that was sold, one must have a credit in order to balance the books. Example Sale of land with a basis of $400,000 for a sales price of $900,000. The deferred gain is $500,000. Note receivable 900,000 Land 400,000 Deferred Gain 500,000
Is the loan interest on undeveloped land tax deductible?
Yes, but exactly how depends on how the asset is held, whcih depends and involves many things, like how the gain on sale will be taxed.
Which do you report on tax forms realized capital gain or unrealized capital gain?
You will report the sale of a capital asset on your 1040 tax form either the schedule D or the schedule 4797 and you will either have a gain or a loss on each transaction that you have to report on the schedules. You are not allowed to claim a loss on the sale of a personal asset but any gain on the sale of a personal asset is taxable income on your 1040 income tax return. You can call them what ever you want. When you read the tax form instructions they do not say realized capital gain or unrealized capital gain.
If Sold land to payoff home capital gains tax?
Yes when you a gain on the sale of a asset you will have to report the sale on your 1040 income tax return and could owe some income after your 1040 income tax return is completed correctly for the year of the sale. At the present time the long term capital gains tax rate on the sale of personal asset (nonbusiness asset) is from the -0- % rate to the maximum 15% rate on the amount of LTCG.
