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During Year 1 , Ashkar Company ordered a machine on January 1 at an invoice price of $ 2 1 , 0 0 0 .

During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $21,000. On the date of delivery, January 2, the company paid $6,000 on the machine, with the balance on credit at 10 percent interest due in six months. On January 3, it paid $1,000 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,500. On July 1, the company paid the balance due on the machine plus the interest. On December 31(the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $3,000.
2. Compute the acquisition cost of the machine.During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $21,000. On the date of
delivery, January 2, the company paid $6,000 on the machine, with the balance on credit at 10 percent interest due
in six months. On January 3, it paid $1,000 for freight on the machine. On January 5, Ashkar paid installation costs
relating to the machine amounting to $2,500. On July 1, the company paid the balance due on the machine plus the
interest. On December 31(the end of the accounting period), Ashkar recorded depreciation on the machine using
the straight-line method with an estimated useful life of 10 years and an estimated residual value of $3,000.
Compute the acquisition cost of the machine.
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