Annie Company Purchased a Computer for $5,000

question 11

Essay

Annie Company purchased a computer for $5,000.During 2018 and 2019,the company recorded total depreciation of $4,000 on the computer.On January 1,2020,the company exchanges the computer for a new one,paying $4,000 cash.The market value of the new computer is $6,000.Prepare the journal entry to record this transaction.Assume the exchange has commercial substance.Omit explanation.

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Definitions:

Silence

The absence of any response or acknowledgment, which in some legal contexts can signify agreement or acquiescence.

Legal Object

A legal term referring to the requirement that an agreement or contract must have a lawful purpose to be enforceable.

Public Policy

Principles and standards that guide governmental actions and decisions to address public issues, reflecting societal values and priorities.

Contractual Capacity

The legal ability of an individual or entity to enter into a binding contract.