King Company purchased a computer on January 2, 20x6, at a cost of

$2,500. The computer is expected to have a useful life of five years and a residual value of $250. Assume that the computer is disposed of on July 1, 20x9. Record the depreciation expense for half a year and the disposal under each of the following assumptions:

1. The computer is discarded.

2. The computer is sold for $400.

3. The computer is sold for $1,100.

Natural Resource Depletion and Depreciation of Related Plant Assets