Exercise 9-2 a-d

Oriole Enterprises purchased equipment on March 15, 2018, for $68,620. The company also paid the following amounts: $500 for freight charges; $193 for insurance while the equipment was in transit; $1,828 for a one-year insurance policy; $2,127 to train employees to use the new equipment; and $2,527 for testing and installation. The equipment was ready for use on April 1, but the company did not start using it until May 1. Oriole has estimated the equipment will have a 10-year useful life with no residual value. It expects to consume the equipments future economic benefits evenly over the useful life. The company has a December 31 year end.

Calculate the cost of the equipment.

When should the company begin depreciating the equipment: March 15, April 1, or May 1?

Which depreciation method should the company use?

Using the method chosen above, calculate the depreciation on the equipment for 2018. (Round answer to 0 decimal places, e.g. 5,275.)

Cost of the equipment