Question

Equipment with a cost of​ $150,000 has an accumulated depreciation of​ $50,000. what is the historical cost of the​ equipment?

Answer 1

Historical cost refers to the original cost of the equipment, which is shown as an asset in on the balance sheet. Whenever the company purchased the equipment, that price is what stays. In this case, the original cost of the equipment is $150,000, so the historical cost is $150,000.