Practice prompt · Q:statement-presentation-comprehensive-income-and-disclosure/gain-versus-revenue-placement-001

Report the sale of a warehouse

Tests whether the learner presents a peripheral transaction net and below the operating subtotal.

Updated Aug 18, 2026 Review due Nov 18, 2026

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A furniture retailer sells a warehouse it had used for storage. The proceeds are 740,000 and the carrying amount at the date of sale is 655,000.

The same company reports the sale of furniture gross and the sale of a warehouse net. The difference is not the size of the transaction but whether it is what the business does.

Choose the best answer. a A gain of 85,000, reported below operating income. b Revenue of 740,000 and cost of 655,000, both within operating results. c A gain of 85,000, reported within operating income. d Revenue of 85,000, reported within operating income.

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Answer: a

Choice a. Proceeds less carrying amount is an 85,000 gain, presented net and below the operating subtotal.