Selected transactions and events for the Conray Company are given below: 20X6 Jan. 2 Conray paid $17,000 for a four-year franchise to distribute a product line locally. Mar. 31 A computer was stolen from the accountant's office. Conray carries no theft insurance. The computer cost $9,960 when purchased on January 2, 20X3, and was being depreciated over six years with a $600 salvage value. Straight-Line Depreciation was last recorded on December 31, 20X5. Apr. 1 Conray entered into a nine-year operating lease for additional warehouse space. Paid in advance the final month's rent of $1,500 when the lease was signed. June 30 Conray discarded office equipment and realized no salvage value. A $480 salvage value, after a six-year useful life, had been estimated when the equipment was acquired for $3,900 on July 1, 20X0. Straight-line depreciation was last recorded on December 31, 20X5. Aug. 1 Conray paid a $2,500 cash bonus to employee for designing and developing a new product. Sept. 1 Conray paid a $9,000 legal s