On december 31, 2017, faital company acquired a computer from plato corporation by issuing a $600,000 zero-interest-bearing note, payable in full on december 31, 2021. faital company's credit rating permits it to borrow funds from its several lines of credit at 10%. the computer is expected to have a 5-year life and a $70,000 salvage value. prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective interest method) on december 31, 2018.

James is an employee in the widget inspection department of xyz systems, a government contractor. james was part of a 3-person inspection team that found a particular batch of widgets did not meet the exacting requirements of the u.s. government. in order to meet the tight deadline and avoid penalties under the contract, james' boss demanded that the batch of widgets be sent in fulfillment of the government contract. when james found out, he went to the vice president of the company and reported the situation. james was demoted by his boss, and no longer works on government projects. james has a: