Abbott Company Purchased a Computer That Cost $10,000

question 82

Multiple Choice

Abbott Company purchased a computer that cost $10,000.It had an estimated useful life of 5 years and no residual value.The computer was depreciated by the straight-line method and was sold at the end of the fourth year of use for $3,000 cash.Abbott should record:

• A)a gain of $1,000.
• B)a loss of $1,000.
• C)neither a gain nor a loss - the computer was sold at its book value.

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Definitions:

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