12 pts Johnson Company purchased factory equipment with an invoice price of $150,000. Other costs incurred were Freight costs, $1.200; installation wiring and foundation, $2,100; material and labor costs in testing quipment, $700: oil lubricants and supplies to be used with equipment, $500: fire insurance policy covering uipment, $1,400. The equipment is estimated to have a $5,000 salvage value at the end of its 10-year ful service life. irements: mpute the acquisition cost of the equipment. Clearly identify each element of cost. the double declining balance method: a) calculate and prepare the journal entry for depreciation for the second year. J A