Answer:
A. It is decreased by the sale amount.
Explanation:
An income statement reports the profits or loss realized by a business in a particular period. In preparing the income statement, accountants consider all the revenues and expenses for that period. A loss occurs when expenses exceed revenues.
Gains or losses from sales of assets are reported in the income statement. Gain or profit is reported as income, while a loss is an expense. A loss from the sale of an asset increases expenses thereby, reducing the profits for that period.
