If a Merchandising Company Sells Land at More Than Its

question 47

True/False

If a merchandising company sells land at more than its cost the gain should be reported in the sales revenue section of the income statement.

---

Definitions:

Esters

Organic compounds derived from carboxylic acids where the hydrogen in the hydroxyl group is replaced by an alkyl or aryl group, often responsible for the aroma of fruits.

Transesterification

A chemical reaction in which an ester is transformed into another ester through the exchange of the alkoxy group.

Methyl Benzoate

An ester formed from methanol and benzoic acid, commonly used in perfumery and flavorings.

Sodium Ethoxide

A strong base formed by the reaction of ethanol with sodium metal, commonly used in organic synthesis.