Lila Company purchased a computer on January 2, 2011, at a cost of $2,500. The computer is expected to have a useful life of five years and a residual value of $250.

Assume that the computer is disposed of on July 1, 2014. Record the depreciation expense for half a year and the disposal under the straight-line method under each of the following assumptions:

1. The computer is discarded.

2. The computer is sold for $400.

3. The computer is sold for $1,100.