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Briyanne,Inc

question 162

Essay

Briyanne,Inc.purchased a computer for $5,000.During 2016 and 2017,the company recorded total depreciation of $4,000 on the computer.On January 1,2018,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.


Definitions:

Marginal Benefit

The increase in satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Optimal Amount

The ideal quantity of a good or resource that maximizes efficiency or value.

R&D

Stands for Research and Development, a business or government activity that involves the investment of resources in developing new products, services, or processes.

Total Utility

The total satisfaction or benefit obtained from consuming a particular quantity of goods or services.

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