Gessel Co. purchases a machine for $10,100, terms 1/10, n/60, FOB shipping point. The seller prepaid the $228 freight charges, adding the amount to the invoice and bringing its total to $10,328. The machine requires special steel mounting and power connections costing $698. Another $329 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting, $290 in damages occurred. Materials costing $40 are used in adjusting the machine to produce a satisfactory product. The adjustments are normal for this machine and are not the result of the damages. Complete the below table to calculate the cost recorded for this machine. (Gessel pays for this machine within the cash discount period.) Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded Use the following information for the Exercises below. [The following information applies to the questions displayed below.) On April 1, 2017, Cyclone's Backhoe Co. purchases a trencher for $314,000. The machine is expected to last five years and have a salvage value of $57,000. Exercise 8-11 Straight-line, partial-year depreciation LO C2 Compute depreciation expense for both years ending December 2017 and 2018 assuming the company uses the straight-line method. Choose Numerator: Choose Denominator: Annual Depreciation Annual depreciation = Annual Depreciation x Fraction of Year Depreciation Expense Year 2017 2018 Catherine's Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $81,400. The machine's useful life is estimated at 20 years, or 387,000 units of product, with a $4,000 salvage value. During its second year, the machine produces 32,700 units of product. Determine the machine's second-year depreciation and year end book value under the straight-line method. Straight-Line Depreciation Choose Numerator: 1 Choose Denominator: Annual Depreciation Expense Depreciation expense Year 2 Depreciation Year end book value (Year 2)