Crane Company purchased equipment on account on September 3,2022 , at an invoice price of...
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Crane Company purchased equipment on account on September 3,2022 , at an invoice price of $181,000. On September 4 , 2022, it paid $3,800 for delivery of the equipment. A one-year, $1,900 insurance policy on the equipment was purchased on September 6 , 2022. On September 20,2022 , Crane paid $4.200 for installation and testing of the equipment. The equipment was ready for use on October 1,2022. Crane estimates that the equipment's useful life will be four years, with a residual value of $16,500. It also estimates that, in terms of activity, the equipment's useful life will be 86,250 units. Crane has a September 30 fiscal year end. Assume that actual usage is as follows: (a) Your answer is correct. Your answer is correct. Determine the cost of the equipment. Cost of equipment \$ Prepare depreciation schedules for the life of the asset under the following depreciation methods: 1. straight-line 2. double diminishing-balance, assuming a rate of 50% 3. units-of-production (Round depreciable amount per unit to 2 decimal places, e.g. 5.27 and the final answers to 0 decimal places, e.8. 5.276.) 1.STRAIGHT-LINE DEPRECIATION 2. DOUBLE DIMINISHING-BALANCE DEPRECIATION 3. UNITS-OF-PRODUCTION 3. UNITS-OF-PRODUCTION
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