Completion Status: Larsen Company purchased factory equipment with an invoice price of $50,000. Other costs incurred were freight costs, $1,300; 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. Acquisition cost of the equipment 54,200 (b) If the straight-line method of depreciation was used, compute the annual depreciation expense.. Annual depreciation expense 12.5% (c) The equipment was disposed at end of 3 years. Record gain or loss (N/A if no gain no loss). (1) It was scrapped as having no value.. Gain or Loss How much (2) It was sold for $30,000. Gain or Loss How much (3) It was sold for $40,000. (c) The equipment was disposed at end of 3 years. Record gain or loss (N/A if no gain no loss). (1) It was scrapped as having no value. Gain or Loss How much (2) It was sold for $30,000. Gain or Loss How much (3) It was sold for $40,000. Gain or Loss How much