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FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Show Attempt History Current Attempt in Progress Carla Vista Company purchased equipment on account on September 3, 2022, at an invoice price of $188,000. On September 4, 2022, it paid $4,500 for delivery of the equipment. A one-year, $1,935 insurance policy on the equipment was purchased on September 6, 2022. On September 20, 2022, Carla Vista paid $3,500 for installation and testing of the equipment. The equipment was ready for use on October 1, 2022. Carla Vista estimates that the equipment's useful life will be four years, with a residual value of $13,000. It also estimates that, in terms of activity, the equipment's useful life will be 73,200 units. Carla Vista has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units ۱-۱ 15,480 23,780 20,080 14,760 Year Ended September 30 2023 2024 2025 2026 Search *** O
Transcribed Image Text:Show Attempt History Current Attempt in Progress Carla Vista Company purchased equipment on account on September 3, 2022, at an invoice price of $188,000. On September 4, 2022, it paid $4,500 for delivery of the equipment. A one-year, $1,935 insurance policy on the equipment was purchased on September 6, 2022. On September 20, 2022, Carla Vista paid $3,500 for installation and testing of the equipment. The equipment was ready for use on October 1, 2022. Carla Vista estimates that the equipment's useful life will be four years, with a residual value of $13,000. It also estimates that, in terms of activity, the equipment's useful life will be 73,200 units. Carla Vista has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units ۱-۱ 15,480 23,780 20,080 14,760 Year Ended September 30 2023 2024 2025 2026 Search *** O
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