Question: 12A theme park purchased a new, exciting ride and financed it through the manufacturer. The following facts pertain: Purchase price $800,000 Delivery cost 50,000 Installation cost 70,000 Cost of trial runs 40,000 Interest charges for first year 60,000 The straight-line method is to be used. Compute the depreciation on the equipment for the first year assuming an estimated service life of 5 years.