A personal computer that originally cost $5,000 has no estimated salvage value and was depreciated at the rate of 20% a year. At the end ofthe third year, the computer was sold for $1,500 cash. The transaction would result in aa. loss of $1,500.Ob. gain of $250.Oc. loss of $250.Od. gain of $1,500.

In nothing given about the depreciation it is assumed that the company is gone for SLM method…

A personal computer that originally cost $5,000 has no est the third year, the computer was sold for $1,500 cash. The transaction would result in a Oa. loss of $1,500. Ob. gain of $250. C. loss of $250. Od. gain of $1,500.

A personal computer that originally cost $5,000 has no est the third year, the computer was sold for $1,500 cash. The transaction would result in a Oa. loss of $1,500. Ob. gain of $250. C. loss of $250. Od. gain of $1,500.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.

Question

A personal computer that originally cost $5,000 has no estimated salvage value and was depreciated at the rate of 20% a year. At the end of
the third year, the computer was sold for $1,500 cash. The transaction would result in a
a. loss of $1,500.
Ob. gain of $250.
Oc. loss of $250.
Od. gain of $1,500.

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