When you dispose an asset on or after 1 October 2001 for proceeds that exceed its base cost you get a?

Formula:

$$\text{Gain (or Loss)} = \text{Sale proceeds} - \text{Book value of asset}$$

Book value = Original cost - Accumulated depreciation.

Substitute:

$$\text{Gain (or Loss)} = \text{proceeds} - \text{book value} < 0$$

Thus, $\text{Loss on sale of asset}$.

Capital loss applies to investments (e.g., shares). Capital gain would be if proceeds > book value.

A. Loss on sale of asset

A