Hamlet College recently purchased new computing equipment for its library. The following information refers to the purchase and installation of this equipment:

1.	The list price of the equipment was $285,000; however, Hamlet College qualified for an education discount of $25,000. It paid $50,000 cash for the equipment, and issued a three-month, 9 percent note payable for the remaining balance. The note, plus accrued interest charges of $4,500, was paid promptly at the notes maturity date.
2.	In addition to the amounts described in 1, Hamlet paid sales taxes of $15,000 at the date of purchase.
3.	Freight charges for delivery of the equipment totaled $1,000.
4.	Installation costs related to the equipment amounted to $5,000.
5.	During installation, one of the computer terminals was accidentally damaged by a library employee. It cost the college $500 to repair this damage.
6.	As soon as the computers were installed, the college paid $4,000 to print admissions brochures featuring the librarys new, state-of-the-art computing facilities.

Instructions

c.

Compute the total cost added to the colleges computing equipment account.

d.	Prepare a journal entry at the end of the current year to record depreciation on the computing equipment. Hamlet College intends to depreciate this equipment by the straight-line method (half-year convention) over an estimated useful life of five years. Assume a zero residual value.