During the third quarter of 20X8,Pride Company sold a piece of equipment at an $8,000 gain.What portion of the gain should Pride report in its income statement for the third quarter of 20X8?
A)$0
B)$2,000
C)$4,000
D)$8,000

Question

Quizplus · Accepted Answer

Gains from the sale of equipment are recognized in full in the period in which the sale occurs. Therefore, the entire $8,000 gain should be reported in the income statement for the third quarter of 20X8.

During the Third Quarter of 20X8,Pride Company Sold a Piece