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Trend Decorations Company provides decorating services for store displays. Trend sold equipment that it had been using to create decorations. Of the following choices, which will Trend report on its income statement when it sells the equipment?

A) Operating revenue: Sales revenue

B) Operating expenses: Loss on disposal of equipment

C) Other items: Loss on sale of equipment

D) General and administrative expenses: Sale of decorating equipment

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Answers (1)
  1. 24 May, 15:46
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    Option "C" is the correct answer to the following statement.

    Explanation:

    We know that the sale of a machine is not included in operating items for an organization.

    in this situation trend Decorations sale a machine, that is used by them to create the decoration.

    In general, the term sale of this type of machine is not considered as revenue income or revenue loss.

    So, this is counted as Other items (Loss or gain).
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