2. Dobler Company purchased factory equipment with an invoice price of $70,000. Other costs incurred were freight costs, $1,300; installation wiring and foundation, S2,200; material and labor costs in testing equipment, $700; oil lubricants and supplies to be used with equipment, S500, fire insurance policy covering equipment, $1,500. The equipment is estimated to have a S4,000 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-line method of depreciation was used, depreciation expense for the second year would be