16.

Which of the following is not included in the cost of equipment?

Group of answer choices

Cost of conducting trial runs

All of the above are included

Insurance while in transit

Freight charges

17.

Company X owns equipment with a cost of $80,000 and a useful life of three years. The productive life in hours is 10,000 hours. The depreciation expense for the year is $21,000 and the hours used this year is 3,000. The company uses the activity method to record depreciation. Compute salvage value.

Group of answer choices

$0

$17,000

$10,000

Not enough information