What is the treatment of a difference between the salvage value and UCC of an asset when the asset is sold? (UCC denotes undepreciated capital cost.) More than one answer may be correct. Multiple select question. The difference remains in the asset pool but does not create tax shield. The difference is realized as gain or loss on the statement of comprehensive income immediately. The difference is not realized as gain or loss on the statement of comprehensive income immediately. The difference remains in the asset pool and continues to create tax shield for as long as pool exist..3

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4MC: Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers...
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What is the treatment of a difference between the salvage value and UCC of an asset when the asset is sold? (UCC denotes undepreciated capital cost.) More than one answer may be correct.

Multiple select question.

The difference remains in the asset pool but does not create tax shield.

The difference is realized as gain or loss on the statement of comprehensive income immediately.

The difference is not realized as gain or loss on the statement of comprehensive income immediately.

The difference remains in the asset pool and continues to create tax shield for as long as pool exist..3

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