alleryA landscaper sells a spare plot bought for 1,500 for 2,000. The extra 500 is recorded as a:
AGain
BGrant
CGrade
DGuard
Answer & Solution
Correct answer: A. Gain
1. Selling land is not the primary trade of a landscaper.
2. Such an infrequent sale above cost is not treated as revenue.
3. The 500 is recorded as a gain.
_Source: OpenStax Principles of Financial Accounting, Chapter 2, Introduction to Financial Statements._
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