O'Connor Company ordered a machine on January 1 at a purchase price of $110,000. On the date of delivery, January 2 , the company pald \$28,000 on the machine and signed a long-term note payable for the balance. On January 3, it pald $1400 for freight on the machine. On January 5, O'Connor pald cosh for installation costs relating to the machine amounting to $6.600. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the stralght.ilne method with an estimated useful life of 10 years and an estimated residual value of $11,800 Required: 1. Indicate the effects (accounts, amounts, and + for increase, - for decrease) of ooch 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 yoar 4. What should be the book value of the machine at the end of the second yat? Complete this question by entering your answers in the tabs below. Indicate the effects (accounts, amounts, and + for increase, - for decreare) of each transaction (on January I, 2, 3, and 5) on the acmourting equation. minus sign.)