Page 220On 1 July 2019, Bear Island Ltd acquired a computer for an initial cost of $50 000. To make the computer more efficient in the workplace, a number of hardware modifications were necessary before installation. These modifications cost $40 000. The computer was ready for use on 1 January 2020. The computer is expected to be used by the entity for a period of five years, after which time it will be scrapped. On 1 July 2021, a high-speed disk drive was acquired at a cost of $20 000. This disk drive will work only on the existing computer.

REQUIRED

Determine the total depreciation expense for the computer and disk drive for the year ended 30 June 2022, using the straightline method, and provide the required journal entries.