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2Costello 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

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2Costello 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 second year of use for $5,000 cash. Costello should record: A. a loss of $1,000 B. a gain of $1,000 C. neither a gain nor a loss - the computer was sold at its book value. D. neither a gain nor a loss-the gain that occurred in this case would not be recognized. Rev. 1217

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