Alladin Company purchased Machine #201 on May 1, 2012. The following information relating to Machine #201 was gathered at the end of May. Price $164,050 Credit terms 2/10, n/30 Freight-in costs $1,544 Preparation and installation costs $7,334 Labor costs during regular production operations $20,265 It was expected that the machine could be used for 10 years, after which the salvage value would be zero. Alladin intends to use the machine for only 8 years, however, after which it expects to be able to sell it for $2,895. The invoice for Machine #201 was paid May 5, 2012. Alladin uses the calendar year as the basis for the preparation of financial statements