Sandhill Company Ltd. acquired equipment at the beginning of Year 1. The asset has an estimated useful life of 5 years. An employee has prepared depreciation schedules for this asset using two different methods, in order to compare the results of using one method with the results of using the other. Assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method and (2) the double-declining-balance method. Sandhill Company Ltd. prepares its financial statements under IFRS.

YearStraight-LineDouble-Declining-Balance1

$14,900

$37,2002

14,90022,3203

14,90013,3924

14,9001,588

5

14,900-0-

Total

$74,500

$74,500

(a)

What is the cost of the asset that is being depreciated?

Cost of the asset