Kovacic Company Purchased a Computer That Cost $10,000

question 46

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

Analyze the importance of segmental information disclosure in assessing business risks and performance.

Familiarize with the exclusions and exceptions in segment reporting and interim financial reporting.

Calculate income tax expense for interim periods following the requirements of IAS 34.

Understand the definition and identification of operating segments according to accounting standards.

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Definitions:

Pattern Recognition

The ability to identify and understand regularities or trends in data, symbols, words, or sounds.

Human Reasoning

The process by which individuals use logic, deduction, and inference to draw conclusions and make decisions.

Comparative Reasoning

A method of reasoning in which two or more entities are compared to ascertain their similarities and differences.

Symphony

An elaborate musical composition for full orchestra, typically in four movements, at least one of which is traditionally in sonata form.