Which of the following is correct when land costing $20,000 is sold for $29,000? The land was a component of property and equipment on the balance sheet.

A) Revenues are debited for $29,000.
B) Cost of goods sold is credited for $20,000.
C) Gain on sale of land is credited for $9,000.
D) Operating income increases $29,000.

When land is sold, the gain on the sale is calculated by subtracting the cost of the land from the selling price. In this case, the land cost $20,000 and was sold for $29,000, resulting in a gain of $9,000. Therefore, the gain on sale of land is credited for $9,000. Revenues and cost of goods sold are not applicable in this scenario as the land was not a product being sold. Operating income may increase, but this cannot be determined solely based on the information given.