1a. The following expenditures were incurred in connection with a new machine acquired by a metals manufacturing company. Identify which of these costs should be included in the cost of the machine (yes or no):

_____ Freight charges

_____ Sales tax on the machine

_____ Payment to a passing motorist whose car was damaged by the equipment In unloading the machine

_____ Wages of the employees for the time spent in installing and testing the Machine before it was placed in service

_____ Wages of employees assigned to lubricate and make minor adjustments to the machine one year after it was placed in service

1b.: Explain the meaning of impairment of an asset. Provide two examples in your explanation. What accounting action should occur when an asset has become substantially impaired?