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:

Thigh

The part of the human leg between the hip and the knee, consisting of several muscles including the quadriceps and hamstrings.

Secretions

Substances produced and released by cells or glands in the body, serving purposes like digestion, lubrication, or hormone regulation.

Carbohydrates

Organic compounds, consisting of carbon, hydrogen, and oxygen, that serve as a major source of energy in the diet of animals.

Sebaceous Gland

Sebaceous glands are small oil-producing glands present in the skin of mammals, secreting sebum through the hair follicles to lubricate and waterproof the skin and hair.