E9-3 Determining Financial Statement Effects of an Asset Acquisition and Straight-Line Depreciation [LO 9.2, LO 9-3] O'Connor Company oirdered a machine on January 1 at a purchase price of $50,000. On the date of delivery, January 2, the company paid $13,000 on the machine and signed a long-term note payable for the balance. On January 3, in paid $500 for freight on the machine. On January 5, O'Connor paid cash for nstallation oosts relating to the machine amounting to $3,000. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-ine method with an estimated useful life of 10 years and an estimated residual value of $5,400 Required 1. Indicate the effects (acoounts, amounts, and for increase- for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. (Enter any decreases to account balances with a minus sign. Assets Liabilities Jan 01 Jan 02 Jan 03 Jan 05 2. Compute the acquisition cost of the machine 3. Compute the t eciation espense to beorted for the finet yor (Do ndt round intermediate 4. What should be the book value of the machine at the end of the second year? (Do not round intermediate calculations