Which of the Following Is Correct When Land Costing $20,000

question 35

Multiple Choice

Which of the following is correct when land costing $20,000 is sold for $29,000? The land was a component of plant and equipment on the balance sheet.

• A)Revenues are debited for $29,000.
• B)Cost of goods sold is credited for $20,000.
• C)Gain on sale of land is credited for $9,000.
• D)Operating income increases $29,000.

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Definitions:

Minority Opinions

Perspectives or viewpoints held by a small segment of a group, which often differ from the dominant or majority views.

Disarming

The act of reducing hostility or suspicion, typically through charm, friendliness, or a straightforward approach.

Agreement

A mutual understanding or arrangement between two or more parties, often formalized by a contract.

Empathy

The ability to understand and share the feelings of another person from their perspective.