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4. Stuart Company purchased a computer that cost $5,000. It had an estimated useful life of five years and no residual value. The computer was

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4. Stuart Company purchased a computer that cost $5,000. It had an estimated useful life of five years and no residual value. The computer was depreciated by the straight-line method and was sold at the end of the third year of use for $3,000 cash. Which of the following statements correctly describes the computer sale? A) Assets and stockholders' equity both increase by $3,000. B) Assets increase $3,000 and stockholders' equity is not affected. C) Assets and stockholders' equity both decrease by $1,000. D) Assets and stockholders' equity both increase by $1,000. E) Assets and stockholders' equity are not affected

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