aing the Nature of a Long -Lived Asset and Determining and Recording the Financial atement Efects of Its Purchase (AP8-1) P8-1 LO8-1,8-2 On January 2, Sum seful life of eight years expenditures: 4 Invoice price of the machine, $85,000. Freight paid by the vendor per sales agreement, $1,000. Installation costs, $2,400 paid in cash. ne has an estimated and an estimated residual value of $2,600. The company provided the following d Payment was made as follows: On January 2: The installation costs were paid in cash. Summers Company common stock, par $1; 2.000 shares (market value, $3.50 per share Note payable, S60,000; 11.5 percent (principa: plus intcrest due April i of the current year). Balance of invoice price to be paid in cash by January 12 On January 12: Summers Company paid the balance due