Question

Assume that Coca-Cola Enterprises (CCE) purchases, in year 1, three (3) vending machines for $120 each. The Coca-Cola Company (KO) pays for a fourth machine, costing $120. As a result, CCE will own four (4) vending machines by paying $360 out of its pocket. Further assume that the useful life of each vending machine is 3 years.

Answer 1

Coca-Cola Enterprises (CCE) purchases four vending machines for a total cost of $360, with each machine costing $120. The vending machines have a useful life of 3 years.

Step-by-step explanation:

CCE purchases three vending machines for $120 each, costing a total of $360. KO pays for a fourth machine, also costing $120. Therefore, CCE will own a total of four vending machines by paying $360 out of pocket.

The useful life of each vending machine is 3 years, meaning they are expected to be operational for that period of time.