Hunt company purchased factory equipment with an invoice price of $90,000 on jan 1. other costs incurred were freight costs, $1,100; 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, $1,400. 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 double-declining-balance method of depreciation was used, show the journal entry to record depreciation expense for the first fiscal year on dec.31.