A company purchased a computer system on January 1, 2021 for S 1,600,00 and sold it one year later on January 1, 2022, for $ 500,000 cash. The straight line method of depreciation was used based on an expected life of five years and a salvage value of $ 130,000. December 31 is the company's year - end. 1. Prepare the journal entry to record depreciation using the straight line method for the Year 2021. Show calculations
A company purchased a computer system on January 1, 2021 for S 1,600,00 and sold it one year later on January 1, 2022, for $ 500,000 cash. The straight line method of depreciation was used based on an expected life of five years and a salvage value of $ 130,000. December 31 is the company's year - end. 1. Prepare the journal entry to record depreciation using the straight line method for the Year 2021. Show calculations
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...
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![A company purchased a computer system on January 1, 2021 for $ 1,600,00 and sold it one year later on
January 1, 2022, for $ 500,000 cash. The straight line method of depreciation was used based on an
expected life of five years and a salvage value of $ 130,000. December 31 is the company's year - end.
1. Prepare the journal entry to record depreciation using the straight line method for the Year 2021. Show
calculations](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5f1ec987-3e07-4e70-9acb-ad4d6bd33e6d%2Fd7b76b92-53ff-42af-928c-5133b58b81de%2F227auur_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company purchased a computer system on January 1, 2021 for $ 1,600,00 and sold it one year later on
January 1, 2022, for $ 500,000 cash. The straight line method of depreciation was used based on an
expected life of five years and a salvage value of $ 130,000. December 31 is the company's year - end.
1. Prepare the journal entry to record depreciation using the straight line method for the Year 2021. Show
calculations
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