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A Company Purchased a Computer System on January 1, Year

question 152

Essay

A company purchased a computer system on January 1, Year 1, for $1,600,000. Prepare the journal entries to record depreciation for the first 6 months of Year 3 and the sale of the computer assuming it is sold on July 1, Year 3, for $1,000,000 cash. The straight-line method of depreciation was used based on an expected life of six years and a salvage value of $130,000.

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Definitions:

Tranquilizer

A drug used to reduce tension or anxiety; an antipsychotic medication.

Mild Anxiety

A lower intensity of anxiety that may be transient and not significantly impair one's ability to function in daily life.

Therapeutic Influence

The impact of treatments or interventions designed to alleviate symptoms or improve the well-being of individuals.

Multiple Personality Disorder

Now known as Dissociative Identity Disorder, it's a severe form of dissociation, a mental process which produces a lack of connection in a person's thoughts, memory, and sense of identity.

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