Please answer correctly. Its urgent

Your LPG Bottling Company operates on a January 1 to December 31 calendar year basis. On April 1, 2020 you decided to purchase a new bottling machine from China. This machine has a purchase price of $200,000. You have to pay an additional 10% of the purchase price as sales tax in China. For importing it to Bangladesh, you will have to pay import tax of $5,000. It will cost you $2,000 to ship it from China to Bangladesh. You decide to take insurance during transportaiton and that will cost you additional $1,000. It will cost you $500 to bring it from Chittagong to your factory in Dhaka. Installation and testing cost will be another $1,000. Since the machine is senstive, you decide to take a 3 year insurance policy on the machine for $5,000. The machine requires yearly maintenance with oils and lubricants, and that cost is set to be $300 per year. You ordered this machine on April 5, 2020 and received delivery on April 20, 2020. Answer the following: a. What is the cost of this machine? b. Assuming this machine has a useful life of 5 years and an expected salvage value of $5,000 at the end of the useful life, prepare the complete depreciation schedule assuming straightline depreciation. |