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:

Superior

Higher in rank, status, or quality; often used to refer to a person who holds a position of authority over others in an organization.

Direct Supervision

A management style where the supervisor is physically present and closely overseeing the work of their subordinates.

Mobbing

A form of bullying or harassment where an individual is attacked by a group in a work or school setting.

Demotion

The action of lowering in rank or position, usually as a result of performance issues or organizational restructuring.