On January 3, 2018, City Corp. purchased machinery. The machinery has an estimated useful life of eight years and an estimated residual value of $67,500. City uses straight-line depreciation for all their machinery, and recorded $115,500 depreciation expense for 2020. The acquisition cost of the machinery was

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The acquisition cost can be calculated by adding the total depreciation over the useful life to the residual value and then adjusting for the annual depreciation amount. Given the annual depreciation expense of $115,500 and a useful life of 8 years, the total depreciation is $115,500 * 8 = $924,000. Adding the residual value of $67,500 gives a total of $991,500.