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Can't figure out the answers for the red x marks Foster Company purchased a new computer system on January 2 of Year 1 for $1,200,000.
Can't figure out the answers for the red x marks
Foster Company purchased a new computer system on January 2 of Year 1 for $1,200,000. The system has a useful life of six years. Its residual value is $20,000. Foster uses the straight-line depreciation method. The following events took place in Year 2. March 1: Peripheral equipment costing $30,000 was added to the system. This equipment has a useful life of seven years and a residual value of $2,000. This equipment can be used with several different computers. Foster could potentially replace the computer system before the disposal of this peripheral equipment. September 1: Additional accessories were added to the computer system, costing $250,000. These accessories have no value apart from the computer system but will increase the total residual value of the system to 540,000 Required Provide the journal entry to record depreciation expense for Year 2 on the computer system and related accessories, and on the peripheral equipment. Note: Carry all decimals in calculations; round final answers to the nearest dollarStep by Step Solution
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