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

question 145

Essay

On January 1, Year 1, Acadia purchased a computer system that cost $1,480,000. The estimated useful life of the computer is 3 years and residual value is $40,000. Straight-line depreciation is to be used. On January 1, Year 2, the company determined that the estimated useful life of the computer would be 4 years instead of 3 years. The estimated residual 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:

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, influencing attention, emotions, and sleeping patterns.

Serotonin

A neurochemical that plays a crucial role in mood regulation, as well as influencing various other bodily functions like sleep, digestion, and clotting.

Depression

A mood disorder characterized by persistent feelings of sadness, loss of interest, and a lack of pleasure in daily activities.

Tardive Dyskinesia

A neurological syndrome characterized by repetitive, involuntary, purposeless movements, often caused by long-term use of certain psychiatric drugs.