OrioleCompany purchased equipment on account on September 3, 2019, at an invoice price of $195,000. On September 4, 2019, it paid $4,800for delivery of the equipment. A one-year, $1,970insurance policy on the equipment was purchased on September 6, 2019. On September 20, 2019,Oriolepaid $3,200for installation and testing of the equipment. The equipment was ready for use on October 1, 2019.

Orioleestimates that the equipment's useful life will be four years, with a residual value of $13,500. It also estimates that, in terms of activity, the equipment's useful life will be94,750units.Oriolehas a September 30 fiscal year end. Assume that actual usage is as follows:

# of UnitsYear Ended September 30

15,550 2020

23,850 2021

20,150 2022

36,100 2023

Determine cost of equipment