Prepare journal entries to record these transactions: A) Morrell Corporation disposed of two computers at the end of their useful lives. The computers had cost $4,800 and their Accumulated Depreciation was $4,800. No residual value was received.
B) Assume the same information as (a), except that Accumulated Depreciation, updated to the date of disposal, was $3,600.

Cost of Computer= 4,800

Annual depreciation = 4,800

No residual value

a) Need to assume depreciation is 3,600 at the date of disposal

b) same information

            Recording the Disposal of a Long-lived Asset

                                                                      DEBIT     CREDIT

a. Accumulated Depreciation                     $4,800

   Computer Account                                                   $4,800

b. Accumulated Depreciation                      $3,600

   Loss on disposal                                       $1,200

   Computer                                                                     $4,800

answer; lags, push the econ below the natural level of output;