On December 31, 2015, Milton Company acquired a computer fromHamil Corporation by issuing a $600,000 zero-interest-bearing note,payable in full on December 31, 2019. Milton Company’s creditrating permits it to borrow funds from its several lines of creditat 10%. The computer is expected to have a 5-year life and a$70,000 residual value.
Prepare the journal entry for the purchase on December 31, 2015 andany necessary adjusting entries relative to depreciation (usestraight-line) and amortization on December 31, 2016
