Depreciation On July 1, 2017, Basden Company buys a computer system for $260,000 in cash, Assume that the computer is expected to have a four year life and an estimated salvage value of $20,000 at the end of that time. Required: 1. Identify and analyze the transaction to record the purchase of the computer on July 1, 2017 Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, ie, a decrease, be sure to enter the answer with a minus sign Balance Sheet Income State Stockholders' Equity Assets Liabilities Revenues 2. Compute the depreciable cost of the computer Check My Work 2 more Check My Work uses remaining Next Email Instructor Save and Ex Submit Assignment for eBook Show Me How Video Calculator em for $260,000 in cash. Assume that the computer is expected to have a four-year life and an estimated salvage value of rchase of the computer on July 1, 2017 y and leave the amount box blank. If the effect on a financial statement item is negative, le, a decrease, be sure to enter sheet Income Statement Net Stockholders' Equity Liabilities + dropdown Expenses Income Check My Work 2 more Check My Work uses remaining Next Email Instructor Save and Exit Submit Assignment for G 1 eBook Show Me How Video Calculator 2. Compute the depreciable cost of the computer 3. Using the straight line method, compute the monthly depreciation per month 1. Identify and analyze the adjustment to record depreciation at the end of July 2017 Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, te, a decrease, be sure to enter the answer with a minus sign. Remember of a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' + Liabilities dropdown Equity 5. Compute the computer's carrying value that will be shown on Basden's balance sheet prepared on December 31, 2017 Check My Work 2 more Check My Work uses remaining Next depreciation sation at the end of July 2017