Question 3 Rack Company purchased factory equipment with an invoice price of 588.000. Other costs incurred were freight costs, $1,100; installation, $2,500; material and labor costs in testing equipment, 56500. Whicants and supplies to be used with equipment, $500; insurance during transit. 51.400. The equipment is estimated to have a $5,000 salvage value at the end of its 8-year useful service life. Requirements: 1) Compute the acquisition cost of the equipment. Clearly identify each element of cost. 2) Using the double declining balance method: a) calculate and prepare the journal entry for depreciation expense for the second year