Final answer:
The correct statement for Mama June Pizza Company's sale of land is that the income before income taxes increased by $14,000, representing the gain on the sale over the cost of the land.
Step-by-step explanation:
When Mama June Pizza Company sold land costing $34,000 for $48,000 cash, the correct statement concerning the land sale is that 'Income before Income Taxes Increased $14,000.' This is because the difference between the sale price ($48,000) and the cost of the land ($34,000) represents a gain on the sale which increases income before income taxes by the amount of the gain, which is $14,000. The land account would be debited to remove it from the books, and a gain on sale of the land account would be credited to reflect the profit from the transaction.
Accounting entries would include a debit to the cash account for the amount received ($48,000), a debit to the land account to remove the land's cost basis ($34,000), and a credit to the gain on sale of land or similar account ($14,000) to reflect the profit. Operating income is not directly affected by the sale of an asset as it's considered a non-operating activity. And, the revenue account is not debited for asset sales; it would be credited if it was the company's ordinary business activity, which in this case it is not.