McFarlane Company's central and ongoing operation is to sell accessories for cellular phones and other...
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Accounting
McFarlane Company's central and ongoing operation is to sell accessories for cellular phones and other personal electronic devices. McFarlane Company sells of a portion of its office furniture for a loss. How would the loss on sale of office furniture be disclosed in the McFarlane Company financial statements?
a. The loss would be disclosed as a reduction of the remaining office equipment asset on the balance sheet
b. The loss would be disclosed as part of the depreciation expense along with other operating expenses on the income statement
c. the loss would reduce the amount of cash that had been received and would not be shown separately on any of the financial statements
d. the loss would be reported below operating items on the income statement as an 'other item'
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