gain

问题如下：

A company is selling a long-lived asset with a carrying amount of $70,000 for $80,000. The original cost of this asset was $120,000. In the year of sale, this event is most likely to be reported on the income statement as:

选项：

A.revenues of $80,000. B.a loss of $40,000. C.a gain of $10,000.

解释：

When a long lived asset is sold only the net gain or loss is reported on the income statement. The gain or loss on a sale = sales proceeds – carrying amount = $80,000 – $70,000 = $10,000 gain.