Current Attempt in Progress Blossom Enterprises purchased equipment on March 15, 2021, for $67,970. The company also paid the following amounts: $520 for freight charges; $187 for insurance while the equipment was in transit; $1,729 for a one-year insurance policy: $1,986 to train employees to use the new equipment; and $2,923 for testing and installation. The company began to use the equipment on April 1. Blossom 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.
Current Attempt in Progress Blossom Enterprises purchased equipment on March 15, 2021, for $67,970. The company also paid the following amounts: $520 for freight charges; $187 for insurance while the equipment was in transit; $1,729 for a one-year insurance policy: $1,986 to train employees to use the new equipment; and $2,923 for testing and installation. The company began to use the equipment on April 1. Blossom 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.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 6RE
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