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calculation please On July 1, 2012, Kilmore Ltd. purchased, for cash, factory equipment with an invoice price of $70,000. Other costs incurred were freight costs,
calculation please
On July 1, 2012, Kilmore Ltd. purchased, for cash, factory equipment with an invoice price of $70,000. Other costs incurred were freight costs, $1,600; installation, wiring and foundation, $13,500; material and labour costs in testing equipment, $400; oil lubricants and supplies to be used while operating the equipment, $750; fire insurance policy covering equipment, $1,400. The equipment is estimated to have a $10,000 residual value at the end of its 8-year useful service life. Round all final calculations to the nearest dollar. Required: A. Calculate the cost of the equipment. B. Record the purchase of the equipment. C. Record Depreciation for Dec 31, 2020 assuming the straight-line method of depreciation is used. Kilmore Ltd. has a December 31 year end and prepares adjusting entries annually. D. What would be the total depreciation expense over 8 years useful life if Kilmore uses the declining balance methodStep by Step Solution
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