Liang Industries purchased a machine for $280,000 cash on the first day of Year 1.

In addition to the purchase price, the company spent an additional $17,500 cash for shipping and installation.

Liang originally estimated that the machine had a useful life of 10 years and a residual value of $26,250.

On the last day of Year 4, Liang sold the machine to another company for $105,000 cash.

What are the journal entries for the following transations? a. Acquisition of the machine (all costs) b. Depreciation in the first year. Liang uses the straight-line method of depreciation. c. Sale of the machine on the last day of Year 4. (Assume that Liang was using the equipment up to the sale date.)