E$9\mathrm{.}2($LO $1,2)($Calculate cost and depreciation; recommend method.$)$ Hohnberger Enterprises purchased equipment on March $15,2024,$ for $$75,000.$ The company also paid the following amounts: $$500$ for freight charges; $$200$ for insurance while the equipment was in transit; $$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 on April $1.$ Hohnberger 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.

Instructions

a$.$ Calculate the cost of the equipment.

b$.$ Which depreciation method should the company use? Why?

c$.$ Using the method chosen in part $($b$),$ calculate the depreciation on the equipment for $2024.$