A toy manufacturer sells land for $180,000 that it bought four years ago for $320,000.This transaction,when recorded,would be:

Name: A toy manufacturer sells land for $180,000 that it bought four years ago for $320,000.This transaction,when recorded,would be:
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Question

Quizplus · Accepted Answer

Selling land for less than its purchase price results in a loss, which is recorded as such in financial statements. This is because the sale of land is a capital transaction, not related to the core operations of a toy manufacturer.

A Toy Manufacturer Sells Land for $180,000 That It Bought