B. PROBLEM 3: CALCULATE COST OF ASSETS AND DEPRECIATION EXPENSE Objective: 1. Determine what asset costs can be capitalized. 2. Determine the depreciation expense under the straight-line method. Empresas Agueyban decides to buy new machinery for its store in Fajardo. Agueyban incurred the following costs related to the acquired machinery. Machinery cost: $ 80,000 Sales tax (sales tax): $4,000 Shipping costs (FOB Shipping costs) $2,500 Installation costs $ 3,500 Extended warranty (2 years) $ 400 The machinery has a useful life of 10 years, with no residual value. Required: 1. Determine the cost of the machinery for Agueyban 2. Determine the total amount of depreciation for the first year if Agueyban uses the straight-line method.