On December 31, 2016, Sasha Velour Company purchased an equipment with an estimated useful life of 10 years. The equipment was expected to have a residual value of P5,000 at the end of its service life. The sum-of-the-years-digits method was used in computing depreciation. For the year ended December 31, 2020, the depreciation applicable to this equipment was P42,000.

What was the acquisition cost of the equipment?

a. 335, 000

b. 325, 000

c. 330,000

d. 293,750