When an asset is sold, gains and losses are recognized as follows: OGains are debited if the cash received from the sale exceeds the book value of the asset. OGains are credited if the cash received from the sale exceeds the book value of the asset. O Losses are credited if the cash received from the sale is less than the book value of the asset.. OGains and losses are only necessary if the asset is sold before the end of its useful life