CHAPTER 7 Long-Term Assets 381 Required: Determine the amount McCoy's Fish House should record as the cost of the land. E7-2 Orion Flour Mills purchased a new machine and made the following expenditures: Record purchase of equipment (LO7-1) Purchase price Sales tax Shipment of machine Insurance on the machine for the first year Installation of machine $75,000 6,000 1,000 700 2,000 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. pared Required: Record the above expenditures for the new machine