Bala Ltd.had a piece of land on its books at its original cost of $400,000.During the year they sold it for $650,000.How would the sale of the land be presented on the income statement? $\begin{array}{ll}
\text { A) Gross profit on land } & \$ 250,000 \
\text { B) Revenue from land sale } & \$ 650,000 \
\text { C) Gain on sale of land } & \$ 250,000 \
\text { D) Disposal of land } & \$ 400,000
\end{array}$

Question

Quizplus · Accepted Answer

The correct presentation is a gain on sale of land, which is calculated as the selling price ($650,000) minus the book value ($400,000), resulting in a gain of $250,000.

Bala LtdHad a Piece of Land on Its Books at Its