Problem One (Application - 6 marks) Calen Company purchased a new computer for $75,000. It is estimated that the computer will have a $7,000 residual value at the end of its 5-year useful service life. The diminishing-balance method of depreciation will be used Instructions Prepare a depreciation schedule (as shown on Textbook Page 387) which shows the annual amortization expense on the computer for its 5-year life. Solution