Dobler Company purchased factory equipment with an invoice price of $60,000. Other costs incurred were freight costs, $1,300; installation wiring and foundation, $2,200; material and labor costs in testing equipment, $700; oil lubricants and supplies to be used with equipment is estimated to have a $5,000 salvage value at the end of its 10-year useful service life.
Instructions
(a.) Compute the acquisition cost of the equipment. clearly identify each element of cost.
(b.) If the straight method of depreciation was used, depreciation expense for the second year would be