If a piece of equipment is fully depreciated after 7 years with a salvage value of $60,000, what is the total depreciable cost?

To determine the total depreciable cost of the equipment, you need to understand that total depreciable cost is calculated as the initial purchase cost of the equipment minus its salvage value, which is the estimated value that the equipment will have at the end of its useful life.

In this case, the piece of equipment is fully depreciated over a period of 7 years, which means that its entire cost will be allocated as depreciation over this time. Given that the salvage value of the equipment is $60,000, we can set up the equation:

Total Depreciable Cost = Initial Cost - Salvage Value.

We know from the information provided that after 7 years, the equipment reaches a state of full depreciation. If we refer back to the hint given by the salvage value (the amount expected to be received when the equipment is sold at the end of its useful life), we can manipulate the formula:

Let's say "Initial Cost" is represented by X. Thus:

Total Depreciable Cost = X - $60,000.

Since the equipment is fully depreciated over 7 years, and considering the total depreciable cost must equal the value of the equipment minus its salvage value, we can express the initial cost in terms of the total depreci