The gain or loss on the disposal of a depreciable asset reported in financial statements often differs from that reported for income tax purposes. The principal reason for the difference is:

Select one:

a$.$ The sales price of the asset is different for financial reporting and income tax purposes.

b$.$ The company has made an error because the same amount of gain or loss should appear in the income tax return as in the financial statements.

c$.$ The cost of the asset is different for financial reporting and income tax purposes.

d$.$ Different depreciation methods have been used in financial statements and in income tax returns.