Kingbird Company purchased Machine #201 on May 1, 2025. The following information relating to Machine # 201 was gathered at the end of May. Price Credit terms Freight-in Preparation and installation costs $120,700 2/10, n/30 $1,136 $5,396 Labor costs during regular production operations $14.910 It is expected that the machine could be used for 10 years, after which the salvage value would be zero. Kingbird intends to use the machine for only 8 years, however, after which it expects to be able to sell it for $2,130. The invoice for Machine #201 was paid May 5, 2025. Kingbird uses the calendar year as the basis for the preparation of financial statements.