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Postby vivek.kaushik » Wed Jan 07, 2015 2:40 pm

If company sales one of its assets eg. Building, then what comes under revenue only the gain or loss on the sale or the full sale price of the building including profit or loss?

We should add profit and subtract loss to reach to net income calculation?

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Postby edupristine » Wed Jan 07, 2015 4:09 pm

You should record the gain only as revenue and losses as a expenses.

We will not include the full sales price in Income statement because we have some book value of the assets on the balance sheet side. So, we will set of the book value after the sale of an asset in Balance sheet.

Hope it is clear

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