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Indigo Company purchased a computer system for $79,300 on January 1, 2024. It was depreciated based on a 7-year life and an $19,800 salvage value.
Indigo Company purchased a computer system for $79,300 on January 1, 2024. It was depreciated based on a 7-year life and an $19,800 salvage value. On January 1, 2026, Indigo revised these estimates to a total useful life of 4 years and a salvage value of $10,400. Prepare Indigo's entry to record 2026 depreciation expense. Indigo uses straight-line depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit Credit
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