Vargas Company sold a piece of land for $39,000 that had originally cost $32,500.How does this business event affect the company's financial statements?

Question

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Vargas would record a gain on the sale of land of $6,500 (or $39,000 - $32,500).The sale would be reported as a cash inflow from investing activities.The gain would affect net income but is shown below operating income on the income statement.

Vargas Company Sold a Piece of Land for $39,000 That