practice final exam

QUESTION 8 10points ' SavaAnswer On June 28, Carpenter Corporation purchased equipment with a purchase price of $38,023 plus 5% sales tax. Shipping terms were FOB Shipping Point and shipping charges were $330. Installation was completed, and the new equipment was placed in service on July 1. Installation costs totaled $959. The shipping and installation costs were paid for in cash. The equipment purchase price, including sales tax, was paid for by issuing a 120 day 5% Note Payable. Based on industry standards, the equipment is expected to have a useful life of 7 years, at which time it will have an estimated worth of $4,388. The equipment will be depreciated using the Straight Line method. What is the total Capitalized Cost of the equipment? QUESTION 9 10minls I SaveAnswer On August 1, Warren Company placed into service equipment with a capitalized cost of $43,525, The equipment was paid for by issuing a 90 day 6% Note Payable. Based on industry standards, the equipment is expected to have a useful life of 8 years, at which time it will have an estimated worth of $4,690. The equipment will be depreciated using the Straight Line method. Based on these transactions alone, what is the Depreciation Expense on the equipment on August 31