Amanda Company Purchased a Computer That Cost $10,000

question 114

Multiple Choice

Amanda Company purchased a computer that cost $10,000.It had an estimated useful life of five years and a residual value of $1,000.The computer was depreciated by the straight-line method and was sold at the end of the third year of use for $5,000 cash. Which of the following statements correctly describes the computer sale?

• A)Assets and stockholders' equity both increase by $5,000.
• B)Assets decrease $5,000 and stockholders' equity is not affected.
• C)Assets and stockholders' equity both decrease by $400.
• D)Assets and stockholders' equity both increase by $400.

---

Definitions:

Model Demand And Supply

The model of demand and supply is a fundamental concept in economics that describes how prices vary as a result of a balance between product availability and the desires of consumers.

Scenario Planning

A strategic planning method used by organizations to make flexible long-term plans based on anticipating possible future scenarios and their impacts on business.

HR Demand

The need within an organization for human resources to fill specific roles or accomplish tasks.

Human Resources Forecasting

Estimating future HR requirements and availabilities, considering factors such as organizational growth, technological advances, and economic trends, to align workforce planning with strategic goals.