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Question
dobler company purchased factory equipment with an invoice price of $75,000. 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, $500; fire insurance policy covering equipment, $1,500. the equipment is estimated to have a $5,000 salvage value at the end of its 8-year useful service life.
instructions
(a)compute the acquisition cost of the equipment. clearly identify each element of cost.
(b)if the straight-line method of depreciation was used, the annual rate applied to the depreciable cost would be __________.
Answer
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