a. 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):

Yes, Freight charges

Yes, Sales tax on the machine

No, Payment to a passing motorist whose car was damaged by the equipment in unloading the machine

Yes, Wages of the employees for the time spent in installing and testing the machine before it was placed in service

No, Wages of employees assigned to lubricate and make minor adjustment to the machine one year after it was placed in service

2. On the process of selling equipment, explain:
   1. How to calculate the gain or loss, and
   2. What accounts are or may be affected by the sale? Include any balance sheet and income statement account effects

Please answer only b