Hamlet College recently purchased new computing equipment for its library. The following information refers to the purchase and installation: 1. the list price of the equipment was $285,000 however, HC qualified for an "education discount" of $25,000. It paid $50,000 cash for the equipment and issued a 3 month, 9 percent note payable for the remaining balance. the note, plus accrued interest charges of $4,500 was paid promptly. 2. in addition, Hamlet paid sales taxes of $15,000 at date of purchase 3. freight charges totaled $1,000 4. Installationm costs $5,000

5. during installation, one of the computer terminals was accidentally damaged by a library employee. it cost $500 to repair. 6. As soon as the computers were installed, HC paid $4,000 for advertisements about the library a. one sentence - general statement summarizing expenditures that qualify for inclusion in the cost of plant assets such as computing equipment. b. for each of the six paragraphs, indicate which items should be included by HC for total cost to its Computing Equipment acct.

c. compute total cost added to the CE acct d. prepare a journal entry of the current year to record depreciation by straight-line over 5 yrs. 0 residual value