Kovacic Company Purchased a Computer That Cost $10,000

question 1

Multiple Choice

Kovacic Company purchased a computer that cost $10,000. It had an estimated useful life of five years and residual value of $0. The computer was depreciated by the straight-line method and was sold at the end of the fourth year of use for $3,000 cash. What should Kovacic record?

• A) Neither a gain nor a loss-the computer was sold at its book value.
• B) A loss of $1,000.
• C) Neither a gain nor a loss-the gain that occurred in this case would not be recognized.
• D) A gain of $1,000.

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Definitions:

Publicly

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Throughput

The rate at which a system generates its product or service, measured over a specific period of time.

Connection Speed

Connection Speed refers to the rate at which data is transmitted from the internet to your computer or vice versa, typically measured in Mbps (Megabits per second).

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