2. Herz Company manufactures routers used in industrial settings. On May 15, 2022, Herz imported a precision welding machine at a retail price of 96,000. Due to the import, Herz paid 15% as import duty for the machine. Herz hired a contractor to build a "clean" platform enclosure for the machine for 7,200. The welding machine with the platform enclosure was successfully installed on May 31, 2022. Herz estimates the machine will have a 5-year useful life, with a salvage value of 8,000 at the end of 5 years. Herz uses straight-line depreciation and Herz's fiscal year ends on December 31. a) At what amount should Herz record the acquisition cost of the machine? b) How much depreciation expense should Herz record in 2022 and 2023? c) If the company decided to use the activity method (units of production) and estimated that the total productive life of the welding machine is 45,000 hours. How much depreciation expense should Herz record in 2022 if the hours used in 2022 were 7,500 hours?