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Business, 05.12.2019 17:31, milonirishovnsez
Pool corporation, inc., is the world's largest wholesale distributor of swimming pool supplies and equipment. assume pool corporation purchased for cash new loading equipment for the warehouse on january 1 of year 1, at an invoice price of $75,000. it also paid $2,400 for freight on the equipment, $1,500 to prepare the equipment for use in the warehouse, and $900 for insurance to cover the equipment during operation in year 1. the equipment was estimated to have a residual value of $3,500 and be used over three years or 25,000 hours. required: 1. record the purchase of the equipment, freight, preparation costs, and insurance on january 1 of year 1. 2. create a depreciation schedule assuming pool corporation uses the straight-line method. 3. create a depreciation schedule assuming pool corporation uses the double-declining-balance method. 4. create a depreciation schedule assuming pool corporation uses the units-of-production method, with actual production of 8,200 hours in year 1; 7,600 hours in year 2; and 8,800 hours in year 3. 5. on december 31 of year 2 before the year-end adjustments, the equipment was sold for $23,500. record the sale of the equipment assuming the company used the straight-line method.
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