PROBLEM 3: CALCULATE COST OF THE ASSET AND EXPENDITURE OF DEPRECIATION Obiective: 7 1. Determine what sosts of the asset can be capitalized. 2. Determine the depreciation expense under the straight-line method, Empresas Agueyban decides to buy new macbinery for its store in Fajardo. Aguevban iocurred the following costs related to the machinery acquired Cost of machinery: $ 80,000 Sales tax (sales tax): 4,000 Shipping sosts (FOB Shipping sosts) 2,500 Installation costs 3,500 Extended warranty (2 years) 400 Tbe machinery has a useful life of 10 years, with no residual value. Required 1. Determine the cost of machinery or Agueyban