Abby Corporation, a Boston company, purchased some machinery from Industries, a corporation located in Denver Colorado. The purchas at a lijuidation sale for a total purchase price of $270,000. The mach transported to Boston at a cost of $20,000 (the terms were FOB shipping point), Once the machinery arrived in Boston, Abby incurred the following costs so that the machinery could be used: electrician costs were $35,200 and plumbing costs were $5,700, In addition, after the machinery was put into production, Abby Corporation performed the normal monthly maintenance costing $8,000. Problem #1-capitalization. Depreciation, and Disp were made gnitnuoOA Requirements: A. What is the total cost that Abby Corporation should capitalize for the machinery? B. Calculate the machinery's annual depreciation using the straight line method assuming the following: a. That the machinery had an estimated salvage value of $15,000 as determined by Abby Corporation b. That the machinery had an estimated useful life i. Of 15 years when new i. Of 11 years when owned by William Industries ii. Of 9 years remaining based upon Abby Corporation's estimate C. 5 years after purchasing the machinery, Abby Corporation disposes of the machinery by selling it to Ruth Enterprises and received $175,000 in cash. Did the disposal of the machinery by Abby Corporation result in a gain, loss, or no gain/loss? If a gain or loss, what was the gain or loss