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Amanda Company purchased a computer that cost $10,600. It had an estimated useful life of five years and a residual value of $1,300. The computer
Amanda Company purchased a computer that cost $10,600. It had an estimated useful life of five years and a residual value of $1,300. The computer was depreciated by the straight-line method and was sold at the end of the third year of use for $5,150 cash. Which of the following statements correctly describes the computer sale? Assets decrease $5150 and stockholders' equity is not affected. O Assets and stockholders equity both increase by $130 O Assets and stockholders equity both decrease by $130. O Assets and stockholders' equity both increase by $5,150
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