On January 1, 2015, Mogul company acquired equipment to be used in the manufacturing operations.  The equipment has an estimated useful life of 10 years and an estimated residual value of 50,000.    The depreciation applicable to this equipment was 240,000 for 2017 computed under the sum of year’s digit method.  What was the acquisition cost of the equipment?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2015, Mogul company acquired equipment to be used in the manufacturing operations.  The equipment has an estimated useful life of 10 years and an estimated residual value of 50,000.

 

 The depreciation applicable to this equipment was 240,000 for 2017 computed under the sum of year’s digit method.

 What was the acquisition cost of the equipment?

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