On January 2, Year 1, Verdi Company acquired a machine for $48,000 cash. In addition to the purchase price, Verdi spent $1,000 cash for shipping and installation, and $1,400 cash to calibrate the machine prior to use. The company estimates that the machine has a useful life of 3 years and residual value of $3,900. Use the financial statement effects template to show how the following activities affect the balance sheet and income statement: a. Acquisition of the machine including all costs incurred to prepare it for its intended use. b. Depreciation in the first year. Verdi uses the straight-line method of depreciation. c. Sale of the machine on December 31, Year 2. Verdi sold the machine to another company for $7,000.