Computer Equipment Used in the Business Office of a Not-For-Profit

question 12

Multiple Choice

Computer equipment used in the business office of a not-for-profit organization was sold for $9,000. The original cost of the equipment had been $21,000 and there was $15,000 of accumulated depreciation as of the date of sale. How will the gain be reported?

• A) Gains are not recognized in not-for-profit organizations.
• B) Unrestricted gain of $3,000.
• C) Temporarily restricted gain of $3,000.
• D) Permanently restricted gain of $3,000.