Question

AmRon Company sold land that had cost $25,000 for $26,500. Based on this information, the company's year-end financial statements would show

Answer 1

The year-end financial statements would show a gain from the sale of the land.

Step-by-step explanation:

The sale of the land by AmRon Company would be recorded in the year-end financial statements as a gain. Since the land was sold for a higher amount than its cost, the company realized a profit on the sale. The gain would be calculated as the selling price minus the cost of the land ($26,500 - $25,000 = $1,500).