Vaughn Ltd. purchased, for cash, factory equipment with an invoice price of $89,000. Other costs incurred were freight costs, $2,400; installation, wiring and foundation, $14,400; material and labour costs in testing equipment, $1,400; oil lubricants and supplies to be used while operating the equipment, $1,650; and fire insurance policy covering equipment, $2,300. The equipment is estimated to have a $19,000 residual value at the end of its eight-year useful service life. (a) Calculate the cost of the equipment. Cost of the equipment $ 4

Vaughn Ltd, purchased, for cash, factory equipment with an invoice price of $89,000. Other costs incurred were freight costs, $2,400; installation, wiring and foundation, $14,400; material and labour costs in testing equipment, $1,400; oil lubricants and supplies to be used while operating the equipment, $1,650; and fire insurance policy covering equipment, $2,300. The equipment is estimated to have a $19,000 residual value at the end of its eight-year useful service life. (a) Calculate the cost of the equipment. Cost of the equipment