Final answer:
In business accounting, a gain on the sale of land is recorded as income and added to the net income.
Step-by-step explanation:
In business accounting, when there is a gain on the sale of land, it is recorded as a credit to the gain on sale of land account. This is an income account which is part of the revenue section in the income statement.
Since it is an increase in income, it is added to the net income of the company. The net income is calculated by subtracting the total expenses from the total revenue.
Examples of other income accounts include sales revenue, interest income, and dividend income.