Ivanhoe Limited purchased a machine on account on April 1, 2021, at an invoice price...
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Ivanhoe Limited purchased a machine on account on April 1, 2021, at an invoice price of $378,380. On April 2, it paid $2,130 for delivery of the machine. A one-year, $3,710 insurance policy on the machine was purchased on April 5. On April 19, Ivanhoe paid $7,920 for installation and testing of the machine. The machine was ready for use on April 30. Ivanhoe estimates the machine's useful life will be five years or 6,054 units with a residual value of $72,200. Assume the machine produces the followiog numbers of units each year: 893 units in 2021; 1,547 units in 2022; 1,308 units in 2023; 1,201 units in 2024; and 1.105 units in 2025. Ivanhoe has a December 31 year end. (a) Determine the cost of the machine. Cost of the machine $
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