On January $2,2021,$ Athol Company bought a machine for use in operations. The machine has an estimated useful life of eight years and an estimated residual value of $$1,400.$ The company provided the following information:

a$.$ Invoice price of the machine, $$68,000.$

b$.$ Freight paid by the vendor per sales agreement, $$860.$

c$.$ Installation costs, $$1,820$ cash.

d$.$ Cost of cleaning up the supplies, boxes, and other garbage that remained after the installation of the machine, $$130$ cash.

e$.$ Payment of the machine's price was made as follows:

January $2$:

$$ Issued $1,120$ common shares of Athol Company at $$5$ per share.

$$ Signed a $$48,400$ note payable due April $16,2018,$ plus $12$ percent interest.

$$ Balance of the invoice price to be paid in cash. The invoice allows for a $3$ percent cash discount if the cash payment is made by January $11.$

January $15$: Paid the balance of the invoice price in cash.

April $16$: Paid the note payable and interest in cash.

f$.$ On June $30,2023,$ the company completed the replacement of a major part of the machine that cost $$13,200.$ This expenditure is expected to reduce the machine$$s operating costs, increase its estimated useful life by two years, and decrease its estimated residual value to $$900.$

g$.$ Assume that on October $1,2028,$ the company decided to replace the machine with a newer, more efficient model. It then sold the machine to Sako Ltd$.$ on that date for $$24,400$ cash.

Required:

$1.$ Compute the acquisition cost of the machine.

$2.$ Prepare the journal entries to record the purchase of the machine and subsequent cash payments on January $15$ and April $16,2021.($Do not round intermediate calculations and round your final answers to the nearest dollar amount. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

a$.$ Record purchase of machine by issue shares, signing a note and the balance on account.

b$.$ Record payment of machine installation costs.

c$.$ Record payment made after discount period.

d$.$ Record payment of note interest.

$3.$ Compute the depreciation expense for each of the years $2021,2022,$ and $2023,$ assuming the company$$s fiscal year ends on December $31.$ Use the straight$-$line depreciation method. $($Do not round intermediate calculations and round your final answers to the nearest dollar amount.$)$

Depreciation expense

$2021?$

$2022?$

$2023?$

$4.$ Prepare the journal entry to record the sale of the machine on October $1,2028.($Hint: First determine the balance of the accumulated depreciation account on that date.$)($Do not round intermediate calculations and round your final answers to the nearest dollar amount. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$$ Record sale of machinery.