On 1 July 2016, Manly Ltd purchased some equipment for use in its operations. The useful life of the equipment is estimated to be 10 years. The company had made the following expenditures:

a. Purchase price of the machine (as per invoice), $1 000 000.

b. Freight expense paid for by the seller (as per the sales agreement), $17 000.

c. Installation cost, paid in cash, $23 000.

Required:
1. What is the total cost of the asset?
2. What is the depreciation expense for year 1, assuming straight-line depreciation is used?
3. What is the balance of accumulated depreciation at 30 June 2018?