The Robbins Foundation Is a Voluntary Health and Welfare Organization

Multiple Choice

The Robbins Foundation is a voluntary health and welfare organization funded by contributions from the general public. Care sold equipment for $35,000 which cost $140,000 and had a book value of $45,000 at the time of sale. In recording the sale, the foundation 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.