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

(4pts)

Question 3 - 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

	gain of $1,500.
	loss of $500
	gain of $250
	loss of $250

After closing the temporary owners' equity accounts into Income Summary, and after allocating the net income and closing the partners' drawing accounts, assume the partners' capital accounts had credit balances as follows:

Ryan, $40,000;

O'Malley, $60,000;

Sullivan,

$45,000.

Partners share profits and losses as follows:

Ryan, 20%; O'Malley, 30%; and Sullivan, 50%.

If Sullivan retired and withdrew $40,000 in settlement of his/her equity and settlements are allocated according to capital interests, the amount entered in Ryan's capital account would be a

(4pts)

Question 4 - After closing the temporary owners' equity accounts into Income Summary, and after allocating the net income and closing the partners' drawing accounts, assume the partners' capital accounts had credit balances as follows: Ryan, $40,000; O'Malley, $60,000; Sullivan, $45,000. Partners share profits and losses as follows: Ryan, 20%; O'Malley, 30%; and Sullivan, 50%. If Sullivan retired and withdrew $40,000 in settlement of his/her equity and settlements are allocated according to capital interests, the amount entered in Ryan's capital account would be a

	$2,000 credit
	$2,000 debit
	$3,000 credit
	$3,000 debit

Equipment that has no exchange or sales value, originally cost $875, and has depreciation totaling $700. The transaction to discard the equipment would result in a

(4pts)

Question 5 - Equipment that has no exchange or sales value, originally cost $875, and has depreciation totaling $700. The transaction to discard the equipment would result in a

	loss of $175
	gain of $175
	loss of $800
	loss of $875