Amanda Company Purchased a Computer That Cost $10,000

question 127

Multiple Choice

Amanda Company purchased a computer that cost $10,000.It had an estimated useful life of five years and a residual value of $1,000.The computer was depreciated by the straight-line method and was sold at the end of the third year of use for $5,000 cash. How much of a gain or loss should Amanda record?

• A)A gain of $1,000.
• B)A loss of $5,000.
• C)A gain of $400.
• D)A loss of $400.

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Definitions:

Scores

A numerical representation of a performance, ability, or achievement.

Standard Deviations

Measures of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.

Z Score

A statistical measure that describes a value's relationship to the mean of a group of values, expressed in terms of standard deviations from the mean.

Mean

The arithmetic average of a set of numbers, calculated by summing all the numbers and then dividing by the count of the numbers.