The Following Is True If Land Is Sold Except

question 81

Multiple Choice

The following is true if land is sold except:

• A)The gain on the sale of land used in a business is recorded on Form 4797.
• B)The gain on the sale of land used in a business is recorded on Schedule D.
• C)The gain on the sale of land used in a business is ordinary income and can appear on a Schedule C if it is owned by a sole proprietor.
• D)The gain on the sale of land appears on the Form 1040 under the heading "other income".

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Definitions:

Cash Dividends

A portion of a company's earnings distributed to shareholders in the form of cash.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company’s operations is directly reported.

Accounts Receivable

The amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Cash Sales

Transactions where payment is made in cash at the time of the sale, without any credit extended.