Question: BruceCo purchased a computer system on January 2, 2018 for $1,600,000. The company used the straight-line depreciation method with an estimated useful life of 6

BruceCo purchased a computer system on January 2, 2018 for $1,600,000.

BruceCo purchased a computer system on January 2, 2018 for $1,600,000. The company used the straight-line depreciation method with an estimated useful life of 6 years and a residual value of $130,000. The company prepares financial statements at December 31. Assume BruceCo decides to sell the computer system on July 1, 2020 for $1,000,000. Which of the following statements about the journal entry (or entries) required on July 1 is not correct? Multiple Choice The loss on the sale is $12,500. The depreciation expense must be recorded for 6 months, January 1 to July 1. The Equipment asset account must be credited for $1,600,000 to record the sale. Accumulated Depreciation is debited for $612,500 in the entry to record the sale

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