In Case B,Pensacola Would Record a Gain/(loss)of

question 95

Multiple Choice

In Case B,Pensacola would record a gain/(loss) of:

• A)$ 4,000.
• B)$ (4,000).
• C)$ (10,000).
• D)None of these answer choices are correct.

---

Definitions:

Economic Unit

An entity, such as an individual, household, or organization, considered in economic analysis and decision-making.

FASB

Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards in the U.S.

Federal Statutes

Laws passed by the national government of a country that are applicable throughout the country.

Accounting Equation

The basic formula expressing that a company's total assets are equal to the sum of its liabilities plus equity capital.