On October 1, Miami Gold Exchange paid cash of $72,000 for computers that are expected to remain useful for five years. At the end of five years, the value of the computers is expected to be zero.

1.Calculate the amount of depreciation for the month of October using the straight-line depreciation method.

2.Record the adjusting entry for depreciation on October 31.

3.Post the purchase of October 1 and the depreciation on October 31 toT-accounts for the followingaccounts: ComputerEquipment, Accumulated Depreciation long dashComputer Equipment, and Depreciation Expense long dashComputer Equipment. Show their balances at October 31.

4.What is the computerequipment's book value at October 31?

(Abbreviation used; Acc. Depreciation= Accumulated Depreciation. Enter a"0" for any zerobalances.)