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Question - Pharoah Enterprises purchased equipment on March 15, 2018, for $81,910. The company also paid the following amounts: $470 for freight charges; $219 for insurance while the equipment was in transit; $1,707 for a one-year insurance policy; $2,212 to train employees to use the new equipment; and $3,041 for testing and installation. The equipment was ready for use on April 1, but the company did not start using it until May 1.
Pharoah 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.
Required - Calculate the cost of the equipment.
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