23. Presto Company purchased equipment and these costs were incurred: Cash price Sales taxes Insurance during transit Installation and testing Total costs $65,000 3,600 640 860 SZ0.100 Presto will record the acquisition cost of the equipment as a. $65,000. b. $68,600. C. $69,240. d. $70,100. 24. Costs incurred to increase the operating efficiency or useful life of a plant asset are referred to as a. capital expenditures. b. expense expenditures. c. ordinary repairs. d. revenue expenditures. On October 1, 2017, Holt Company places a new asset into service. The cost of the asset is $120,000 with an estimated 5-year life and $30,000 salvage value at the end of its useful life. What is the depreciation expense for 2017 if Holt Company uses the straight-line method of depreciation? a. $4,500 b. $24,000 c. $6,000 d. $12,000