Payne Company purchased equipment on account on September 3, 2022, at an invoice price of $210,000. On September 4,2022 , it paid $4,400 for delivery of the equipment. A one-year, $1,975 insurance policy on the equipment was purchased on September 6 , 2022. On September 20,2022, hayne paid $5,600 for installation and testing of the equipment. The equipment was ready for use on October 1,2022. Payne estimates that the equipment's useful life will be four years, with a residual value of $15.000. It also estimates that, in terms of activity, the equipment's useful life will be 82.000 units. Payne has a September 30 fiscal year end. Assume that actual usage is as follows