Plant Assets and Depreciation Bunnicula Inc purchased a machine for the business on 1 March 20X7 for $12,000. The company incurred additional costs for transportation of $1,300 and installation of $2,000. Shortly after she started to use the machine, it broke down and the repairs of the machine cost $600. Angela charges depreciation at 10% per annum on straight line basis with a full year's charge in the year of acquisition. Required: Calculate the correct net book value of the machine at the year-end date of 31 December 20X7. EXERCISE 4 Perpetual LIFO and Periodic FIFO. MadMax Inc sells item A as part of its product line. Information as to balances on hand, purchases, and sales of item A are given in the following table for the first six months of 2017. Quantities Unit Price Date Purchased Sold Balance of Purchase January 11 400 $2.50 January 24 1,300 1,700 $2.60 February 8 300 1,400 March 16 560 840 June 11 600 1,440 $2.75 Required: (a) Compute the ending inventory at June 30 under the perpetual LIFO inventory pricing method. (b) Compute the cost of goods sold for the first six months under the periodic FIFO inventory pricing method