Q5. Frank and Wann Company purchased machinery on 1st January of the current year at a list price of $60,000, with a trade discount of 2%. The terms of payments were 3\10, n\30, including a sales tax of 4%. The company availed the concession period of payment. The company incurred the following expenses. (10) Transportation charges Installation and testing charges Package charge Insurance in transit $683 1,000 500 1,500 The company also paid $350 as a fine on account of negligent driving by one of the company's driver while transportation the machinery. During installation work of the machinery, an adjacent was damaged and repair cost paid $650. License fee paid for the operation of the machinery $300 for the current year. An amount of $ 2,400 was paid as fire insurance premium on the three years policy. It is estimated that the machinery has a scrap value of $8000 at the end of its estimated service life of 10 years. Required: 1. Calculate the total cost of the machinery. 2. Compute and record the depreciation expense for the first 5 years assuming that the following depreciation methods were used. a. Straight line Method. b. Diminishing Balance method by using 20% rate