Crane Company purchased equipment on account on September 3, 2022, at an invoice price of $203,000. On September 4, 2022. it paid $5.600 for delivery of the equipment. A one-year, $2,013 insurance policy on the equipment was purchased on September 6, 2022. On September 20, 2022, Crane paid $2,400 for installation and testing of the equipment. The equipment was ready for use on October 1, 2022 Crane estimates that the equipment's useful life will be four years, with a residual value of $17.500. It also estimates that, in terms of activity, the equipment's useful life will be 96,750 units. Crane has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units 15,630 24.200 20,230 37,590 Year Ended September 30 2023 2024 2025 2026

Crane Company purchased equipment on account on September 3, 2022, at an invoice price of $203,000. On September 4, 2022. it paid $5.600 for delivery of the equipment. A one-year, $2,013 insurance policy on the equipment was purchased on September 6, 2022. On September 20, 2022, Crane paid $2,400 for installation and testing of the equipment. The equipment was ready for use on October 1, 2022 Crane estimates that the equipment's useful life will be four years, with a residual value of $17.500. It also estimates that, in terms of activity, the equipment's useful life will be 96,750 units. Crane has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units 15,630 24.200 20,230 37,590 Year Ended September 30 2023 2024 2025 2026

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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