Podunk College recently purchased new exercise equipment for its gym. The following information refers to the purchase and installation of this equipment: 1. The list price of the equipment was $180,000; however, Podunk College qualified for an "educational discount" of $30,000. It paid $20,000 cash for the equipment, and issued a 3-month, 12% note payable for the remaining balance. The note, plus accrued interest charges of $3,900 was paid promptly at the maturity date. 2. In addition to the amounts described in 1, Podunk paid sales taxes of $7,500 at the date of purchase. 3. Freight charges for delivery of the equipment totaled $1,200. 4. Installation and training costs related to the equipment amounted to $4,000. 5. During installation, one of the pieces of equipment was accidentally damaged by an employee. It cost the college $600 to repair this damage. 6. As soon as the equipment was installed, the college paid $70,000 to print admissions brochures featuring the gym's new, state-of-new-art exercise facilities. Instructions a. Compute the total cost debited to the college's Equipment account. b. Prepare a complete depreciation schedule, beginning with calendar year 2001, under each of the methods listed below (assume that the full year is used): 1. Straight-line. 2. 150% declining-balance. Podunk College recently purchased new exercise equipment for its gym. The following information refers to the purchase and installation of this equipment: 1. The list price of the equipment was $180,000; however, Podunk College qualified for an "educational discount" of $30,000. It paid $20,000 cash for the equipment, and issued a 3-month, 12% note payable for the remaining balance. The note, plus accrued interest charges of $3,900 was paid promptly at the maturity date. 2. In addition to the amounts described in 1, Podunk paid sales taxes of $7,500 at the date of purchase. 3. Freight charges for delivery of the equipment totaled $1,200. 4. Installation and training costs related to the equipment amounted to $4,000. 5. During installation, one of the pieces of equipment was accidentally damaged by an employee. It cost the college $600 to repair this damage. 6. As soon as the equipment was installed, the college paid $70,000 to print admissions brochures featuring the gym's new, state-of-new-art exercise facilities. Instructions a. Compute the total cost debited to the college's Equipment account. b. Prepare a complete depreciation schedule, beginning with calendar year 2001, under each of the methods listed below (assume that the full year is used): 1. Straight-line. 2. 150% declining-balance