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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
What else can I help you with?
Are deferred tax is fixed asset?
Deferred tax is not considered a fixed asset. Instead, it represents a tax obligation or benefit that arises due to temporary differences between the accounting treatment of certain items and their treatment for tax purposes. Deferred tax assets can arise from situations like tax losses carried forward, while deferred tax liabilities arise when income is recognized for accounting purposes before it is recognized for tax purposes. Thus, they are classified under non-current assets or liabilities on the balance sheet but do not fit the definition of fixed assets.
Why is deferred cost treated as asset?
Deferred cost has similar treatment to prepayment.
What is the meaning of deferred revenue expenditure?
an deferred revenue is known as accounting
What is an activity of the asset accounting sub process?
Which of the following is an activity of the Asset Accounting sub-process
What is an 1031 exchange form used for?
A 1031 is a swap of a business or business assets. This means that the IRS does not see as a capital gain or investment and the asset can continue to grow maintaining a tax deferred status.
Why is deferred cost treated as asset?
Deferred cost has similar treatment to prepayment.
Are deferred tax is fixed asset?
Deferred tax is not considered a fixed asset. Instead, it represents a tax obligation or benefit that arises due to temporary differences between the accounting treatment of certain items and their treatment for tax purposes. Deferred tax assets can arise from situations like tax losses carried forward, while deferred tax liabilities arise when income is recognized for accounting purposes before it is recognized for tax purposes. Thus, they are classified under non-current assets or liabilities on the balance sheet but do not fit the definition of fixed assets.
What is the meaning of deferred revenue expenditure?
an deferred revenue is known as accounting
What does DTA stands for in banking?
Deferred Tax Asset
Is deferred income tax current asset?
yes
What is an activity of the asset accounting sub process?
Which of the following is an activity of the Asset Accounting sub-process
What is an activity of the Asset Accounting sub-process?
Which of the following is an activity of the Asset Accounting sub-process
What is the activities of the asset accounting sub-process?
Which of the following is an activity of the Asset Accounting sub-process
Is land considered an asset in financial accounting?
Yes, land is considered an asset in financial accounting.
What circumstances lead to recording of deferred tax asset?
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Unexpired insurance at the end of the fiscal period represents is it an accured asset liability expense or deferred expense?
deferred nexpense
Are all temporary differences that exist at balance date recognised as deferred tax assets or deferred tax liabilities?
yes - either a deferred tax asset (DTA) or a deferred tax liability (DTL).
