1. 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.