On December 31, 2017, Indigo Company acquired a computer from Plato Corporation by issuing a $650,000 zero-interest-bearing note, payable in full on December 31, 2021. Indigo Companys credit rating permits it to borrow funds from its several lines of credit at 12%. The computer is expected to have a 5-year life and a $76,000 salvage value.

Prepare the journal entry for the purchase on December 31, 2017

Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2018.

Prepare any necessary adjusting entries relative to depreciation and amortization on December 31, 2019