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On January 1, Year 5, Raven Limo Service, Incorporated sold…
On January 1, Year 5, Raven Limo Service, Incorporated sold a used limo that had cost $72,500 and had accumulated depreciation of $44,500. The limo was sold for $38,500 cash. Which of the following shows how the sale of the limo would affect Raven’s financial statements? Balance SheetIncome StatementCash Flow StatementAssets=Liabilities+EquityCash+Book Value of LimoGain−Loss=Net IncomeA.38,500+(28,000)= +10,50010,500− =10,50038,500 IAB.38,500+(28,000)= +10,50010,500− =10,50010,500 IAC.38,500+(28,000)= +10,50038,500− =38,50010,500 OAD.38,500+(28,000)= +10,50038,500−28,000=10,50038,500 OA
On January 1, Year 5, Raven Limo Service, Incorporated sold…
Questions
On Jаnuаry 1, Yeаr 5, Raven Limо Service, Incоrpоrated sold a used limo that had cost $72,500 and had accumulated depreciation of $44,500. The limo was sold for $38,500 cash. Which of the following shows how the sale of the limo would affect Raven's financial statements? Balance SheetIncome StatementCash Flow StatementAssets=Liabilities+EquityCash+Book Value of LimoGain−Loss=Net IncomeA.38,500+(28,000)= +10,50010,500− =10,50038,500 IAB.38,500+(28,000)= +10,50010,500− =10,50010,500 IAC.38,500+(28,000)= +10,50038,500− =38,50010,500 OAD.38,500+(28,000)= +10,50038,500−28,000=10,50038,500 OA
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