Care Foundation is a voluntary health and welfare organization funded by contributions from the general public.Care sold equipment for $30,000 which cost $40,000 and had a book value of $25,000 at the time of sale.In recording the sale,Care should:

Question

Quizplus · Accepted Answer

Since the equipment was sold for $30,000 and had a book value of $25,000, Care Foundation will record a gain of $5,000 on the sale. Recording "temporarily restricted revenue" would not be appropriate in this scenario.

Care Foundation Is a Voluntary Health and Welfare Organization Funded