Hamberger Enterprises On Oct 1, Hamberger Enterprises purchased, for cash, factory equipment with an invoice price of $170,000. Additional costs incurred (also paid cash) were the following: Freight cost, $2,000 Electricity panels for the new equipment, $5,000 Training employees, $500 Material and labour costs in testing equipment, $1,000 Fire insurance policy covering equipment for its first year of operation, $1,400 The company has estimated the equipment will have a 5-year useful life with 10,000 residual value. It expects to consume the equipment's future economic benefits evenly over the useful life. The company has a December 31 year end. Instructions Calculate the cost of the equipment. Which depreciation method would you recommend to the company? (1) straight-line method (2) diminishing-balance method (3) units-of-production method (4) any method is acceptable Calculate the depreciation for December 31 of the first year of operation using the straight-line method