Q5 Ronni and Tony Company purchased machinery on 1st January of the current year at a list price of $70,000, with a trade discount of 2.5%. The terms of payments were 2110, n.30, including a sales tax of 5%. The company availed the concession period of payment. The company incurred the following expenses. (10) Transportation charges $683 Installation and testing charges 1,200 Package charge 500 Insurance in transit 1,700 The company also paid $450 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 $850. License fee paid for the operation of the machinery $300 for the current year. An amount of $ 2,500 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