Crane Company purchased equipment on account on September 3, 2022, at an invoice price of $203,000. On September 4, 2022. it paid $5.600 for delivery of the equipment. A one-year, $2,013 insurance policy on the equipment was purchased on September 6, 2022. On September 20, 2022, Crane paid $2,400 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 $17.500. It also estimates that, in terms of activity, the equipment's useful life will be 96,750 units. Crane has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units 15,630 24.200 20,230 37,590 Year Ended September 30 2023 2024 2025 2026
Crane Company purchased equipment on account on September 3, 2022, at an invoice price of $203,000. On September 4, 2022. it paid $5.600 for delivery of the equipment. A one-year, $2,013 insurance policy on the equipment was purchased on September 6, 2022. On September 20, 2022, Crane paid $2,400 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 $17.500. It also estimates that, in terms of activity, the equipment's useful life will be 96,750 units. Crane has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units 15,630 24.200 20,230 37,590 Year Ended September 30 2023 2024 2025 2026
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Crane Company purchased equipment on account on September 3, 2022, at an invoice price of $203,000. On September 4, 2022. it
paid $5.600 for delivery of the equipment. A one-year, $2.013 insurance policy on the equipment was purchased on September 6,
2022. On September 20, 2022, Crane paid $2,400 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 $17.500. It also estimates that, in terms of
activity, the equipment's useful life will be 96,750 units. Crane has a September 30 fiscal year end. Assume that actual usage is as
follows:
# of Units
15,630
24.200
20,230
37.590
Year Ended September 30
2023
2024
2025
2026
Transcribed Image Text:Determine the cost of the equipment.
Cost of equipment $
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