Jack Buys a Computer from Sam, Knowing Fully Well That

question 104

Multiple Choice

Jack buys a computer from Sam, knowing fully well that the technology used in it is obsolete.In this case, the trade is

• A)beneficial to both parties.
• B)beneficial only to Sam.
• C)beneficial only to Jack.
• D)not beneficial to either of them.

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Definitions:

Net Income

The amount of profit left over after all expenses and taxes have been subtracted from total revenue.

Depreciation Expense

The allocated portion of the total cost of a company's tangible assets that is charged to expense across the asset's useful life.

Net Income

Net income is the total earnings of a company after all expenses and taxes have been subtracted from total revenue.