Denver Inc. has an old computer system. The computer originally costs Denver $90,000 and its current book value is $35,000. Answer the following questions: Do not use the account name of book value. There is no such account name as book value in accounting*   1) What is accumulated depreciation on the Denver's computer?   2) Journal entry if Denver discards the computer (for nothing).   3) Journal entry if Denver sells the computer for $90,000.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
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Denver Inc. has an old computer system. The computer originally costs Denver $90,000 and its current book value is $35,000. Answer the following questions: Do not use the account name of book value. There is no such account name as book value in accounting*

 

1) What is accumulated depreciation on the Denver's computer?

 

2) Journal entry if Denver discards the computer (for nothing).

 

3) Journal entry if Denver sells the computer for $90,000. 

 

Show proper calculation 

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