Answer:
Journal Entry to record the transaction
Dr. Cr.
(a) Dec 31 , 2010
Computer $600,000
Note payable $600,000
(b) Dec 31 , 2011
Depreciation Expense $106,000
Accumulated Depreciation $106,000
(b) Dec 31 , 2012
Depreciation Expense $106,000
Accumulated Depreciation $106,000
Explanation:
Depreciation = ( $600,000 - $70,000 ) / 5 = $106,000