Reference no: EM132608742

Question - Sun City sold a used police car. The police car had a historical cost of $25,000, a fair value of $18,000, and was sold for $10,000. Assuming that the city maintains its books and records in a manner to facilitate the preparation of the fund financial statements, what is the appropriate entry in the general fund to record this sale?

A. Debit Cash $10,000; Credit Revenue $10,000.

B. Debit Cash $10,000; Credit Automotive equipment $10,000.

C. Debit Cash $10,000 and Loss on sale $8,000; Credit Automotive equipment $18,000.

D. Debit Cash $10,000; Credit Other financing sources-sale of asset $10,000.