Partial year depreciation

CHAPTER 9 Property, Plant, and Equipment and Intangibles Problem 9-16B Partial year's depreciation; revising depreciation; exchanging PPE L02,3,4,6 CHECK FIGURES: Aug. 31, 2017, Computer equip. $72,600; Dec. 31, 2017, Deprec. Exp. $7.240 During 2017, Global Designs Inc. had the following transactions. 2017 Aug. 31 Global traded-in furniture with a cost of $42,000 and accumulated depreciation of $25,800 recorded in the accounting records on this date. Global paid $56,400 in cash for a computer system that was estimated to have a three-year life and a $19,200 residual value. The invoice for the exchange showed these items: 74,400 Price of the computer equipment... Trade-in allowance granted on the furniture.(18.000) Total paid in cash 56,400 Sept. 4 Paid $11,760 for upgrades to the computer equipment, which increased the economic benefits flowing from the Dec. 31 Recorded straight-ine depreciation on the computer equipment to the nearest whole month. Round calculations Required Prepare journal entries to record the transactions. Assume that the fair values were not known equipment. to the nearest whole dollar at the time of the exchange