Accounting for the Acquisition of a Long-Term Asset Action Jackson Company acquired a new machine in order to expand its productive capacity.

The costs associated with the machine purchase were as follows:

1. Make the journal entry to record the acquisition of the machine. Assume that all costs were paid in cash.
2. Make the journal entry to record the acquisition of the machine. Assume that Action Jackson Company signed a note payable for the $25,000 purchase price and paid the remaining costs in cash.

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Purchase price Installation costs Cost of initial testing Sales tax.. $25,000 750 900 1,563