Part 4: Multiple Choice Questions 1. Technology Plus sold land for $435,000 during 2019. Technology Plus purchased the land for $400,000 during 2015. How will this sale be captured in the 2019 income statement of Technology Plus? a. This is a balance sheet transaction and will not be captured in the income statement. b. Technology Plus will record a gain of $35,000. C. Technology Plus will record a loss of $35,000. d. Technology Plus will record a gain of $435,000. 2. Refer to the Technology Plus transaction in #1 above. In which section of the income statement will this transaction appear? a. Nonoperating items b. Gross profit C. Operating expenses d. This is a balance sheet transaction and will not be captured in the income statement. 3. Technology Plus sold a laptop to a customer for $2,500 cash. The laptop cost Technology Plus $790. How will this transaction be captured in the accounting records? a. Revenue will decrease by $2,500. b. Cost of goods sold will increase by $2,500. C. Inventory will increase by $790. d. Cost of goods sold will increase by $790. 4. The value of cost of goods available for sale is split between which two accounts in the financial statements? a. Beginning inventory and ending inventory b. Cost of goods sold and purchases c. Inventory and cost of goods sold d. Purchased and ending inventory