Wildhorse Enterprises purchased equipment on March 15, 2021, for $70,220. The company also paid the following amounts: $450 for freight charges; $191 for insurance while the equipment was in transit; $1,641 for a one-year insurance policy; $1,954 to train employees to use the new equipment; and $2,539 for testing and installation. The company began to use the equipment on April 1.
Wildhorse has estimated the equipment will have a 10-year useful life with no residual value. It expects to consume the equipment’s future economic benefits evenly over the useful life. The company has a December 31 year-end.
Calculate the cost of the equipment.
- olliverLv 62 months ago
Cost = 70220+450+191+1954+2539 =75354