On January 1, 2020, ABC Corporation (ABC) acquired and placed in service a machine to be used in its automobile repair shop. Management of ABC has estimated the useful life of the machine to be 10 years. Management has also estimated that at the end of the 10 year period the machine will have a salvage value equal to 10% of the cash that ABC paid for the machine. ABC Corporation borrowed a portion of the money needed to buy the machine from a local bank. Payments on the borrowed money will bear interest at 5% for a period of 10 years. The vendor that sold the machine to ABC paid all of the freight associated with the delivery of the machine and ABC was not required to pay any installation or other costs. ABC Corporation has insured the machine for its estimated market value on the date of purchase. The invoice terms for purchase of the machine were 2/10/Net 30. The invoice was dated, January 1, 2020 and ABC paid for the machine on January 2, 2020. Based upon the preceding information, ABC's accountant has calculated the annual straight-line depreciation for the machine to be $9,000 for each of the years 2020 through 2029. Based on the preceding, complete the attached excel spreadsheet. Where appropriate, round calculations to the nearest dollar B 1 2 Original Invoice Cost of the Machine per invoice dated January 1, 2020 3 4 Amount of Cash Paid for the Machine 5 6 Salvage Value 10% of Amount of Cash Paid for Machine 7 8 Net Cost to be Depreciated 9 10 Estimated Useful Life 11 12 Annual Depreciation 13 14 Total Depreciation to be Taken over Equipment Life 15 On January 1, 2020, ABC Corporation (ABC) acquired and placed in service a machine to be used in its automobile repair shop. Management of ABC has estimated the useful life of the machine to be 10 years. Management has also estimated that at the end of the 10 year period the machine will have a salvage value equal to 10% of the cash that ABC paid for the machine. ABC Corporation borrowed a portion of the money needed to buy the machine from a local bank. Payments on the borrowed money will bear interest at 5% for a period of 10 years. The vendor that sold the machine to ABC paid all of the freight associated with the delivery of the machine and ABC was not required to pay any installation or other costs. ABC Corporation has insured the machine for its estimated market value on the date of purchase. The invoice terms for purchase of the machine were 2/10/Net 30. The invoice was dated, January 1, 2020 and ABC paid for the machine on January 2, 2020. Based upon the preceding information, ABC's accountant has calculated the annual straight-line depreciation for the machine to be $9,000 for each of the years 2020 through 2029. Based on the preceding, complete the attached excel spreadsheet. Where appropriate, round calculations to the nearest dollar B 1 2 Original Invoice Cost of the Machine per invoice dated January 1, 2020 3 4 Amount of Cash Paid for the Machine 5 6 Salvage Value 10% of Amount of Cash Paid for Machine 7 8 Net Cost to be Depreciated 9 10 Estimated Useful Life 11 12 Annual Depreciation 13 14 Total Depreciation to be Taken over Equipment Life 15