E9.2(LO 1,2)(Calculate cost and depreciation; recommend method.) Hohnberger Enterprises purchased equipment on March 15,2024, for...
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ELO Calculate cost and depreciation; recommend method. Hohnberger Enterprises purchased equipment on March for $ The company also paid the following amounts: $ for freight charges; $ for insurance while the equipment was in transit; $ for a oneyear insurance policy; $ to train employees to use the new equipment; and $ for testing and installation. The company began to use the equipment on April Hohnberger has estimated the equipment will have a 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 year end.
Instructions
a Calculate the cost of the equipment.
b Which depreciation method should the company use? Why?
c Using the method chosen in part b calculate the depreciation on the equipment for No
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