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 $80,000 and had accumulated depreciation of $44,000. The limo was sold for $32,400 cash. Which of the following shows how the sale of the limo would affect Raven's financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Equity Cash + Book Value of Limo Gain − Loss = Net Income A. 32,400 + (36,000) = + (3,600) 3,600 − = (3,600) 32,400 IA B. 32,400 + (36,000) = + 3,600 3,600 − = 3,600 3,600 IA C. 32,400 + (36,000) = + (3,600) − 3,600 = (3,600) D. 32,400 + (36,000) = + (3,600) − 3,600 = (3,600) 32,400 IA