During a discussion regarding the recent sale of a piece of equipment, your company president, Nanda Saloojee, stated: “I don’t understand what it means to ‘have a gain from the sale of equipment.’ Why do we call it a ‘gain’ and not ‘revenue’? Does the fact that we have a gain mean there was a problem with our prior years’ financial statements? If so, please explain what that was.” Prepare a brief response to the president’s statement.