Question:What would happen to the balance sheet of a company that has automobiles with loans associated with them, and sells the automobiles for more than the carrying value of the loan? 

A There will be no impact 
B The company would be out of compliance with loan covenants 
C There will be gain on the sale of automobiles, and a reduction in debt 
D There will be loss on the sale of automobiles, and an increase in debt 

+ Answer
C 

+ Explanation
Answer not sure

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Md. Habib Ullah

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