On January 1, Year 5, Raven Limo Service, Incorporated sold a used limo that had cost $74,000 and had accumulated depreciation of $46,000. The limo was sold for $40,000 cash. Which of the following shows how the sale of the limo would affect Raven's financial statements? Assets Cash + A. $40,000 + B. $40,000 + C. $40,000 + D. $40,000 + Balance Sheet Book Value of Limo $(28,000) $(28,000) $(28,000) $(28,000) = Liabilities + + Gain Equity $12,000 $12,000 + $12,000 $12,000 $40,000 $12,000 $40,000 $12,000 = = + + - Income Statement Loss NA $28,000 = = = = = Net Income $12,000 $12,000 $40,000 $12,000 Cash Flow Statement $40,000 IA $12,000 IA $12,000 OA $40,000 OA

On January 1, Year 5, Raven Limo Service, incorporated sold a used limo that had cost $74,000 and had accumulated deprechation of $46,000. The limo was sold for $40,000 cash. Which of the followng shows how the sale of the limo would affect Raven's financial statements