On January 1, Year 1, Naples Purchased a Computer System

question 143

Essay

On January 1, Year 1, Naples purchased a computer system that cost $1,480,000. The estimated useful life of the computer is 3 years and salvage value is $40,000. Straight-line depreciation is to be used. On January 1, Year 2, Naples determined that the estimated useful life of the computer would be 4 years instead of 3 years. The estimated salvage value will only be $10,000.
Prepare the journal entry to record depreciation expense for Year 1. Prepare the journal entry to record depreciation expense for Year 2.

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Definitions:

Theoretical Statement

A proposition or idea that forms part of a theoretical framework, intended to explain a phenomenon or predict future observations.

Facts

Statements that can be proven to be true or existent through evidence or demonstration.

Events

are occurrences or activities that take place at a specific time and place, often involving participation or observation by people.

Functionalism

A theoretical framework in sociology and anthropology that views society as a complex system whose parts work together to promote solidarity and stability.