Question

Equipment with a cost of $150,000 has an accumulated depreciation of $100,000. What is the historical cost of the equipment?

Answer 1

Determination of historical cost of Equipment:

A historical cost is the original cost of the assets purchased. It is the value at which the asset is recorded in the accounts. In other words, historical cost is the nominal or original cost at which the asset was acquired.

In the given case it is given that Equipment has a cost of $150,000.

Hence the historical cost of Equipment shall be $150,000.