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Sheridan Company purchased equipment on account on September 3, 2022, at an invoice price of...

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Accounting

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Sheridan Company purchased equipment on account on September 3, 2022, at an invoice price of $186,000. On September 4, 2022, it paid $4,300 for delivery of the equipment. A one-year, $1,925 insurance policy on the equipment was purchased on September 6 , 2022. On September 20,2022 , Sheridan paid $3,700 for installation and testing of the equipment. The equipment was ready for use on October 1, 2022. Sheridan 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 71,600 units. Sheridan has a September 30 fiscal year end. Assume that actual usage is as follows: Determine the cost of the equipment. Cost of equipment $ 1. STRAIGHT-LINE DEPRECIATION 2. DOUBLE DIMINISHING-BALANCE DEPRECIATION 3. UNITS-OF-PRODUCTION

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