O'Connor Company ordered a machine on January 1 at a purchase price of $70,000. On the date of delivery, January 2, the company paid $18,000 on the machine and signed a long- term note payable for the balance. On January 3, it paid $700 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $4,200. 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 $7,500. Required Indicate the effects (accounts, amounts, andfor 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.) Jan 02 an 03 2 Compute the acquisition cost of the machine Compute the depreciation expense to be reported for the first year. (Do not round intermediate calculations.) 4 What should be the book value of the machine at the end of the second year? (Do not round intermediate calculations.)