Reference no: EM131156724
Enterprises purchased equipment on March 15, 2012, for $88,440.
The company also paid the following amounts:
$1,320 for delivery charges;
$120 for insurance while the equipment was in transit;
$2,160 for a one-year insurance policy;
$2,030 to train employees to use the new equipment;
and $3,120 for testing and installation.
The equipment was ready for use on April 1, 2012, but the company did not start using it until May 1, 2012. Hohnberger 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.
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