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Amanda Company purchased a computer that cost $12,200. It had an estimated useful life of four years and a residual value of $2,100. The
Amanda Company purchased a computer that cost $12,200. It had an estimated useful life of four years and a residual value of $2,100. The computer was depreciated by the straight-line method and was sold at the end of the third year of use for $6,510 cash. Which of the following statements correctly describes the computer sale? Multiple Choice Assets and stockholders' equity both decrease by $1,885. Assets decrease $6,510 and stockholders' equity is not affected. Assets and stockholders' equity both increase by $6.510. Assets and stockholders' equity both increase by $1,885.
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