On December 31, 2017, Faital Company acquired a computer from Plato Corporation by issuing a $600,000zero-interest-bearing note, payable in full on December 31, 2021. Faital Company's credit rating permits it to borrow funds from its several lines of credit at10%. The computer is expected to have a 5-year life and a $70,000salvage value.

(a) Prepare the journal entry for the purchase on December 31, 2017.

(b) What are the necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2018.

(c) What are the necessary adjusting entries relative to depreciation and amortization on December 31, 2019.