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Cash equivalents are reported on the financial statements a. as an increase to operating revenues on the income statement; b. as a part of property, plant and equipment on the balance sheet; c. as an addition to accounts d. combined with cash in the current asset section of the balance sheet. receivable in the current asset section of the balance sheet; Bad debt expense is reported on the income statement as: a. a reduction of sales b. part of"other" revenues and expenses c. part of cost of goods sold; d. part of operating expenses. Bugs Moran Company sells a truck which originally cost $32,000. Accumulated depreciation at the time of the sale was $27,000. The estimated residual value of the truck when it was purchased was $2,000. Assuming the truck was sold for $8,000 cash, Bugs Moran Company would report the following on its income statement with regards to the sale: a. a $6,000 gain on asset sale; b. a $5,000 gain on asset sale; c. a $3,000 gain on asset sale; d. no gain or loss on asset sale. Lucky Luciano Company purchased new equipment on January 1, 2018, at a cost of $80,000. In addition, the company paid $5,000 sales tax on the equipment, $12,000 to have the equipment delivered and installed, and $3,000 testing and calibrating the equipment before it was placed in service. After using the equipment for 30 days, the company had to do some normal maintenance on the equipment at a cost of $150. The total cost of this equipment recorded as an asset in the accounting records is: a. $80,000 b. $97,000 c. $100,000 d. $100,150

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