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 pald $10,000 on the machine and signed a long-term note payable for the balance. On January 3, It pald $350 for freight on the machine. On January 5, O Connor paid cash for Installation costs relating to the machine amounting to $2400. On December 31 (the end of the accounting perod), 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: 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 RequiredRequired 2 Required 3 Required 4 Indicate the effects (accounts, amounts, and + for increase, with a minus sign.) for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. (Enter any decreases to account balances Assets Stockholders' Equity Jan. 1 Jan. 2 Jan. 3 Jan. 5 Required 1 Required 2 > on 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 pald $10,000 on the machine and signed a long-term note payable for the balance. On January 3, It pald $350 for freight on the machine. On January 5O'Connor paid cash for Installation costs relating to the machine amounting to $2.400. On December 31 the end of the accounting perlod), O'Connor recorded depreclation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $4,750. staieon yb frth r or to years engrioa. con 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 acquisltion cost of the machine. 3. Compute the depreclation 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? & Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3 Required4 What should be the book value of the machine at the end of the second year? (Do not round intermediate calculations.) Book Value S 38,950 K Required 3 Required4>