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O'Connor Company ordered a machine on January 1 at a purchase price of $50,000. On the date of delivery, January 2, the company paid $13,000

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O'Connor Company ordered 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 , it paid $500 for freight on the machine. On January 5, O'Connor paid cash for installation costs 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 stralght-line method with an estimated useful life of 10 years and an estimated residual value of $5,400 Required: 1. Indicate the effects (accounts, amounts, and + for increase, - for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. 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, (Ent) minus signt 1. Indicate the effects (accounts, amounts, and + for increase, accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the firs 4. What should be the book value of the machine at the end of t Complete this question by entering your answers in the tak Compute the acquisition cost of the machine. accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the 4. What should be the book value of the machine at the end Complete this question by entering your answers in the Compute the depreciation expense to be reported for the first y 1. Indicate the effects (accounts, amounts, and + for increase, accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the firs 4. What should be the book value of the machine at the end of th Complete this question by entering your answers in the tab What should be the book value of the machine at the end of the seco

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