Which of the following is correct when land costing $23,000 is sold for $31,000? The land was a component of property and equipment on the balance sheet.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter2: Analysis Of Financial Statements
Section: Chapter Questions
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Which of the following is correct when land costing $23,000 is sold for $31,000? The land was a component of property and equipment on the balance sheet.

Multiple Choice
O
O
O
O
Cost of goods sold is credited for $23,000.
Gain on sale of land is credited for $8,000.
Operating income increases $31,000.
Revenues are debited for $31,000.
Transcribed Image Text:Multiple Choice O O O O Cost of goods sold is credited for $23,000. Gain on sale of land is credited for $8,000. Operating income increases $31,000. Revenues are debited for $31,000.
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