A Company Discarded a Computer System Originally Purchased for $18,000

question 127

Multiple Choice

A company discarded a computer system originally purchased for $18,000.The accumulated depreciation was $17,200.The company should recognize a(an) :

• A)$0 gain or loss.
• B)$800 loss.
• C)$800 gain.
• D)$8,000 loss.
• E)$7,200 loss.

Construct and analyze budgets for cash collections, merchandise purchases, and cash disbursements.

Evaluate the financial performance through budgeted net income and cash flow statements.

Understand the concepts and methodologies for preparing a master budget.

Calculate and interpret budgeted sales, cash collections, and accounts receivable balances.

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Definitions:

Utility Functions

Mathematical expressions used in economics to represent a consumer's preference ranking for various bundles of goods.

Consumption

The utilization of goods and services by households or individuals to satisfy their needs and wants.

Grain

The small, hard seeds of cereal plants like wheat, rice, and corn, used as a primary source of food for humans and animals.

Rats

Small mammals known for their sharp teeth, keen sense of smell, and often considered pests in many societies, but also used extensively in scientific research.