Question: A machine with a book value of $ 3 8 , 0 0 0 is sold for $ 3 2 , 0 0 0 cash.

A machine with a book value of $38,000 is sold for $32,000 cash. Which of the following answers would accurately represent the effects of the sale on the financial statements?
Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders EquityRevenue/GainExpense/Loss=Net IncomeA.38,000=NA+38,00038,000NA=38,00038,000I/AB.(6,000)=NA+(6,000)NA6,000=(6,000)6,000OAC.(6,000)=NA+(6,000)NA6,000=(6,000)6,000IAD.(6,000)=NA+(6,000)NA6,000=(6,000)32,000IA
Multiple Choice
Option A
Option B
Option C
Option D

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