A Company Purchased a Computer System on January 2,2018 for $1,600,000.The

Multiple Choice

A company purchased a computer system on January 2,2018 for $1,600,000.The company used the straight-line depreciation method with an estimated useful life of 6 years and a residual value of $130,000.The company prepares financial statements at December 31. Which of the following is correct about the depreciation recorded?

A) Accumulated Depreciation will be debited for $266,667.
B) The book value of the computer system at December 31,2018 will be $1,225,000.
C) Depreciation expense will be debited for $245,000.
D) The depreciable cost of the computer system is $1,600,000.