10.8 Journal Entries for Depreciation and Amortization Expense Prepare journal entries for each of the following transactions or events for Liu Cybersystems: a. Acquired computers costing $800,000 and software costing $80,000 on January 1,2016 . Liu expects the computers to have a service life of 10 years and $80,000 residual value. The software is expected to have a service life of four years and zero residual value. b. Paid $40,000 to install the computers at Liu's office. Paid $20,000 to test the software. c. Liu records depreciation and amortization expense for the computers and the computer software using the straight-line method for 2016 and 2017. d. On January 1, 2018, new software on the market makes the software acquired in 2011 obsolete. e. On January 2, 2018, Liu revised the depreciable life of the computers to a total of 14 years and the salvage value to $112,000. Give the entry to record depreciation expense for 2018. f. On December 31, 2019, Liu sells the computers for $520,000. Give the required journal entries for 2019. 10.8 Journal Entries for Depreciation and Amortization Expense Prepare journal entries for each of the following transactions or events for Liu Cybersystems: a. Acquired computers costing $800,000 and software costing $80,000 on January 1,2016 . Liu expects the computers to have a service life of 10 years and $80,000 residual value. The software is expected to have a service life of four years and zero residual value. b. Paid $40,000 to install the computers at Liu's office. Paid $20,000 to test the software. c. Liu records depreciation and amortization expense for the computers and the computer software using the straight-line method for 2016 and 2017. d. On January 1, 2018, new software on the market makes the software acquired in 2011 obsolete. e. On January 2, 2018, Liu revised the depreciable life of the computers to a total of 14 years and the salvage value to $112,000. Give the entry to record depreciation expense for 2018. f. On December 31, 2019, Liu sells the computers for $520,000. Give the required journal entries for 2019