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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Is it OPTION A, B, C or D
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On January 1, Year 5, Raven Limo Service, Incorporated sold a used limo that had cost $64,000 and had accumulated depreciation of
$36,000. The limo was sold for $26,000 cash. Which of the following shows how the sale of the limo would affect Raven's financial
statements?
30:32
ok
Assets
Cash
+
A. 26,000 +
B. 26,000 +
C. 26,000 +
D.
26,000 +
Balance Sheet
Book Value of
Limo
(28,000)
(28,000)
(28,000)
(28,000)
Multiple Choice
=
= Liabilities +
ΝΑ
+
ΝΑ
ΝΑ
ΝΑ
+
+
+
Stockholders'
Equity
(2,000)
2,000
(2,000)
(2,000)
Gain
2,000
2,000
ΝΑ
ΝΑ
Income Statement
Loss =
ΝΑ
ΝΑ =
2,000
- $2,000
=
-
-
-
-
=
Net Income
(2,000)
2,000
(2,000)
(2,000)
Statement of
Cash Flows
26,000 IA
2,000 IA
ΝΑ
26,000 IA"
Transcribed Image Text:5
On January 1, Year 5, Raven Limo Service, Incorporated sold a used limo that had cost $64,000 and had accumulated depreciation of
$36,000. The limo was sold for $26,000 cash. Which of the following shows how the sale of the limo would affect Raven's financial
statements?
30:32
ok
Assets
Cash
+
A. 26,000 +
B. 26,000 +
C. 26,000 +
D.
26,000 +
Balance Sheet
Book Value of
Limo
(28,000)
(28,000)
(28,000)
(28,000)
Multiple Choice
=
= Liabilities +
ΝΑ
+
ΝΑ
ΝΑ
ΝΑ
+
+
+
Stockholders'
Equity
(2,000)
2,000
(2,000)
(2,000)
Gain
2,000
2,000
ΝΑ
ΝΑ
Income Statement
Loss =
ΝΑ
ΝΑ =
2,000
- $2,000
=
-
-
-
-
=
Net Income
(2,000)
2,000
(2,000)
(2,000)
Statement of
Cash Flows
26,000 IA
2,000 IA
ΝΑ
26,000 IA
Expert Solution
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