Trend Decorations Company provides decorating services for store displays.Trend sold equipment that it had been using to create decorations.Of the following choices,which will Trend report on its income statement when it sells the equipment?

Question

Quizplus · Accepted Answer

When Trend sells the equipment, it will report a loss on disposal of equipment as an operating expense on the income statement. This represents the difference between the book value of the equipment and the sale price received.

Trend Decorations Company Provides Decorating Services for Store Displays