Crane Company purchased equipment on January 1 at a list price of $120400, with credit terms 2/10, n/30. Payment was made within the discount period and Crane was given a $2000 cash discount. Crane paid $5600 sales tax on the equipment, and paid installation charges of $1750. Prior to installation, Crane paid $4100 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment?

$125750

$129850

$131850

$124000

A company purchased factory equipment for $550000. It is estimated that the equipment will have a $62000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be

$132000.

$220000.

$195200.

$84960