Answer:
$25000
Step-by-step explanation:
If the salvage value is 20% of the cost, then 80% of the cost will be depreciated over 10 years. Over the 5 years from Jan 1 20X1 to Dec 31 20X5, the $10,000 accumulated depreciation represents 5/10 of that 80%, or 40% of the initial cost.
$10,000 = 0.40 × cost
$10,000/0.40 = cost = $25,000
The acquisition cost of the equipment was $25,000.
