O'Connor Company ordered a machine on January $1$ at a purchase price of $$40,000.$ On the date of delivery, January $2,$ the company

paid $$10,000$ on the machine and signed a long$-$term note payable for the balance. On January $3,$ it paid $$350$ for freight on the

machine. On January $5,$ O'Connor paid cash for installation costs relating to the machine amounting to $$2,400.$ On December $31($the

end of the accounting period$),$ O'Connor recorded depreciation on the machine using the straight$-$line method with an estimated

useful life of $10$ years and an estimated residual value of $$4,750.$

Required:

Indicate the effects $($accounts$,$ amounts, and $+$ for increase, $-$ for decrease$)$ of each transaction $($on January $1,2,3,$ and $5)$ on the

accounting equation.

Compute the acquisition cost of the machine.

Compute the depreciation expense to be reported for the first year.

What should be the book value of the machine at the end of the second year?

Complete this question by entering your answers in the tabs below.

Indicate the effects $($accounts$,$ amounts, and $+$ for increase, $-$ for decrease$)$ of each transaction $($on January $1,2,3,$ and $5)$ on the accounting equation. $($Enter any decrei

a minus sign.$)$