Care Foundation Is a Voluntary Health and Welfare Organization Funded

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:

A) Record a loss of $10,000.
B) Record a gain of $10,000.
C) Record a loss of $5,000.
D) Record a gain of $5,000.