Accounting for Capital Assets A firm pays $5,000,000 to acquire a piece of machinery, The purchasing frm hos agreed to pay installation charges of $100,000 The machine has a useful life of 7 years and is depreciated using straight-line depreciation method. Assume there is no salvage value (a) What amount is capitalized on the balance sheet under long-term assets? OA. 54,900,000 OB. $5,000,000 C. $100,000 OD. $5,100.000 (b) What is the annual depreciation expense that will be recorded annually on the income statement? A $700.000 B. $728,57143 5714,285,71 OD. $100,000 () What is the book value of the machine at the end of year 2? O A $3,57142857 B $3,000,000 OC $4,285,714.20 OD $3,642,857 14 (a) the firm decides to sol the asset at the end of year 2 for $3,800,000, what is the firsatlar tax cash flow from the astot tale? The firm's tax rate in 35%, OA $3,800,000 OB. 53,745,000 OC 31,300,000 OD. $3,642,857.14