Reference no: EM132843624

Tweedie Company reported the following in the long-term asset section of its balance sheet. They did not purchase or sell any Equipment during the period.

                                                                                          Dec. 31, Year 2              Dec. 31, Year 1
Equipment, net of depreciation of $120,000 and 100,000, respectively      $167,500             $187,500
Patent, net of amortization of $31,500 and $27,000, respectively                88,000                 92,500

The company uses the straight-line method to depreciate and amortize all of its operating assets. No new long-term assets were acquired nor sold during the year.

Problem 1: What is the historical cost of the equipment?