Question

Cullumber Company purchased equipment on account on September 3, 2022, at an invoice of $204,000. On September 4, 2022, it paid $5,700 for the delivery of the equipment. A one-year, $2,018 insurance policy on the equipment was purchased on September 6, 2022. On September 20, 2022, Cullumber paid $2,300 for the installation and testing of the equipment. The equipment was ready for use on October 1, 2022. Cullumber estimates that the equipment's useful life will be four years, with a residual value of $18,000. It also estimates that, in terms of activity, the equipment's useful life will be 77,600 units. Cullumber has a September 30 fiscal year-end. Assume that actual usage is as follows:

          Cullumber Company purchased equipment on account on September 3, 2022, at an invoice of $204,000. On September 4, 2022, it paid $5,700 for the delivery of the equipment. A one-year, $2,018 insurance policy on the equipment was purchased on September 6, 2022. On September 20, 2022, Cullumber paid $2,300 for the installation and testing of the equipment. The equipment was ready for use on October 1, 2022.
Cullumber estimates that the equipment's useful life will be four years, with a residual value of $18,000. It also estimates that, in terms of activity, the equipment's useful life will be 77,600 units. Cullumber has a September 30 fiscal year-end. Assume that actual usage is as follows:

cullumber company purchased equipment on account on september 3 2022at an invoice of 204000 on september 4 2022 it paid 5700 for delivery of the equipment a one year 2018 insurance policy on 28758

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