Task #$1-$ PP&E:

On Jan $1,2024$ VN Inc. $("$VNI$")$ purchased a new "Bitcoin Mining Technology" computer. The computer costed $$130,000$ to purchase and it was purchased with cash.

The computer will have a useful life that is based upon the hours it is operated. Based upon the manufacturer the computer will last $26,000$ hours and at that time the technology will be outdated.

VNI has done some estimates and has come up with the following usage:

$\backslash$table$[[$Year$,\backslash$table$[[$Actual$],[$Hours$]],\%$ of Total,$\backslash$table$[[$Average$],[$Hours Per$],[$Day$]]],[,,,],[2024,7,920,33\mathrm{.}00\%,21\mathrm{.}70],[2025,8,640,36\mathrm{.}00\%,23\mathrm{.}67],[2026,7,440,31\mathrm{.}00\%,20\mathrm{.}38],[,,,],[$Total$,24,000,100\mathrm{.}00\%,]]$

VNI knows they can't run the computer for $26,000$ hours over the next $3$ years, and instead can only run it for $24,000$ hours due to maintenance that needs to occur. As they are only running the computer for $24,000$ hours VNI will be able to sell some of the parts of the computer for $$10,000$ in $2027($hence once the computer is no longer usable$).$

Based upon their analysis VNI determined the average usage $\%$ per years is $45\%$

VNI is unsure how to expense this asset and needs your help.

Current:

Determine the accounting entries for the purchase and depreciation of the computer for each of the following methods of depreciation.

Future:

Assume on Jan $10,2027$ VNI can sell the computer for $$8,000.$ Determine the journal entry to record the sale.

Required $-$ Complete the above using each of the depreciation methods provided below for $2024,2025,2026$ and $2027$:

a$)$ Journal Entries $-$ Straight$-$line

b$)$ Journal Entries $-$ Declining balance

c$)$ Journal Entries $-$ Activity

$2$