On January 2, 2007, Jones & Smith Limited acquired equipment to be used in its manufacturing operations. The equipment has an estimated useful life of 10 years, an estimated residual value of $15,000, and was expected to be used 38,000 hours. The amortization applicable to this equipment was $63,075 for 2000, computed under the activity method after the machine was used 4,350 hours. Calculate the acquisition cost of the equipment.

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The Answer of On January 2, 2007, Jones & Smith Limited acquired equipment to be used in its manufacturing operations. The equipment has an estimated useful life of 10 years, an estimated residual value of $15,000, and was expected to be used 38,000 hours. The amortization applicable to this equipment was $63,075 for 2000, computed under the activity method after the machine was used 4,350 hours. Calculate the acquisition cost of the equipment.

On January 2, 2007, Jones & Smith Limited Acquired Equipment