Answer:
Journal Entry to record the transaction
                       Dr.         Cr.
(a) Dec 31 , 2010
Computer            $600,000
Note payable                   $600,000
(b) Dec 31 , 2011
Depreciation Expense  $106,000
Accumulated Depreciation       $106,000
(b) Dec 31 , 2012
Depreciation Expense  $106,000
Accumulated Depreciation       $106,000
Explanation:
Depreciation = ( $600,000 - $70,000 ) / 5 = $106,000