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On January 1, 2022, Blue Spruce Company purchased the following two machines for use in its production process. Machine A: Machine B: The cash

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On January 1, 2022, Blue Spruce Company purchased the following two machines for use in its production process. Machine A: Machine B: The cash price of this machine was $49,500. Related expenditures also paid in cash included: sales tax $3,650. shipping costs $100, insurance during shipping $60, installation and testing costs $110, and $150 of oil and lubricants to be used with the machinery during its first year of operations. Blue Spruce estimates that the useful life of the machine is 5 years with a $5,350 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. The recorded cost of this machine was $180,000. Blue Spruce estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period.

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