Danner Co Purchased a Computer on January 1, 2019, for $1,600,000

Danner Co. purchased a computer on January 1, 2019, for $1,600,000. The straight-line method of depreciation was used, based on an expected life of 6 years and a residual value of $130,000. Prepare the journal entries to record depreciation for the first 6 months of 2021 and the sale of the computer on July 1, 2021, for $1,000,000.
$\begin{array}{|l|r|r|}\hline \text { Jul-01 Depreciation Expense } * & 122,500 & \\\hline \text { Accumulated Depreciation, Computer } & & 122,500 \\\hline\\\hline \text { 1 Cash } & 1,000,000 & \\\hline \text { Accumulated depreciation, Computer ** } & 612,500& \\\hline \text { Computer Equipment } & & 1,600,000\\\hline \text { Gain on Disposal of Equipment *** } & & 12,500\\\hline \\\hline\end{array}$
$\begin{array}{l}*((\$ 1,600,000-\$ 130,000) / 6) \times 1 / 2 \\\hline **(\$ 1,600,000-\$ 130,000) / 6) \times 2.5 \text { years }=\$ 612,500\end{array}$