O'Connor Company ordered a machine on January 1 at a purchase price of $30,000. On the date of delivery, January 2, the company paid $8,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $300 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $1,800. 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 $3,200. 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. (Enter any decreases to account balances with a minus sign.) Date Assets Liabilities Stockholders' Equity Jan 01 Jan 02 Jan 03 Jan 05 2. Compute the acquisition cost of the machine. Acquisition Cost 3. Compute the depreciation expense to be reported for the first year. (Do not round Intermediate calculations.) Depreciation Expense 4. What should be the book value of the machine at the end of the second year? (Do not round intermediate calculations.) Book Value