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At the beginning of the year, Patrick Company acquired a computer to be used in its operations. The computer was delivered by the supplier, installed by Patrick, and placed into operation. The estimated useful life of the computer is five years, and its estimated residual value is significant.
Required:
1. a. What costs should Patrick capitalize for the computer?
b. What is the objective of depreciation accounting?
2. What is the rationale for using accelerated depreciation methods?
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