Hobe Company purchased equipment on August 1, 2014. The following information relating to the equipment was gathered at the end of August.

Price $150,000

Credit terms 1/10, n/60

Freight-in costs $ 2,100

Preparation and installation costs $ 2,600

Labor costs during regular production operations $ 21,500

Hobe intends to use the equipment for 5 years, after which it expects to be able to sell it for $11,600. The invoice for the equipment was paid August 9, 2014. Hobe uses the calendar year as the basis for the preparation of financial statements.

Required Find the acquisition cost (6 points) and compute the depreciation expense using the Double-declining-balance method for 2014 and 2015 (10 points) .