Amanda Company Purchased a Computer That Cost $10,000

Multiple Choice

Amanda Company purchased a computer that cost $10,000.It had an estimated useful life of five years and a residual value of $1,000.The computer was depreciated by the straight-line method and was sold at the end of the third year of use for $5,000 cash. How much of a gain or loss should Amanda record?

A) A gain of $1,000.
B) A loss of $5,000.
C) A gain of $400.
D) A loss of $400.