Depreciation and Disposal--A Comprehensive Problem

Essay

Depreciation and disposal--a comprehensive problem
Domino, Inc uses straight-line depreciation with a half-year convention in its financial statements. On March 10, 2006, Domino acquired a computer system at a cost of $98,800. Estimated useful life is six years, with residual value of $5,200.
(a) Complete the following schedule, showing depreciation expense Domino expects to recognize each year in the financial statements.

(b) Assume Domino sells the computer system on October 3, 2009, for $26,650.