Answer Happy

Question 1 Hamilton Inc purchased equipment on Mar 15, 2021 for $75,000. The company also paid the following amounts: $500 for freight charges, $200 for insurance while 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 of April 1. Hamilton has estimated the equipment will have a 10 year useful life with no residual value. It expects to consume the equipment's future benefits equally over the useful life. The company has a Dec 31 year end. A) calculate the cost of the equipment B) Which depreciation method should they use? C) Given the answer in b) calculate the depreciation on equipment for 2021