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E9.2(LO 1,2)(Calculate cost and depreciation; recommend method.) Hohnberger Enterprises purchased equipment on March 15,2024, for...

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Accounting

E9.2(LO 1,2)(Calculate cost and depreciation; recommend method.) Hohnberger Enterprises purchased equipment on March 15,2024, for $75,000. The company also paid the following amounts: $500 for freight charges; $200 for insurance while the equipment was in transit; $1,800 for a one-year insurance policy; $2,100 to train employees to use the new equipment; and $2,800 for testing and installation. The company began to use the equipment on April 1. Hohnberger has estimated the equipment will have a 10-year useful life with no residual value. It expects to consume the equipment's future economic benefits evenly over the useful life. The company has a December 31 year end.
Instructions
a. Calculate the cost of the equipment.
b. Which depreciation method should the company use? Why?
c. Using the method chosen in part (b), calculate the depreciation on the equipment for 2024.
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