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Purchased equipment for $109,000 using a note payable, due in 12 months plus 8% interest. The company also paid cash of $4,600 for freight and
Purchased equipment for $109,000 using a note payable, due in 12 months plus 8% interest. The company also paid cash of $4,600 for freight and $5,200 for installation and testing of the equipment. The equipment has an estimated residual value of $16,800 and a ten-year service life Record the adjusting entry for depreciation on the equipment purchased on April 1, 2021, calculated using the straight-line method.
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