Recording Asset Acquisition, Depreciation, and Disposal $($FSET$)$ company estimates that the machine has a useful life of $3$ years and residual value of $$17,550.$

Use the financial statement effects template to show how the following activities affect the balance sheet and income statement:

a$.$ Acquisition of the machine including all costs incurred to prepare it for its intended use.

b$.$ Depreciation in the first year. Verdi uses the straight$-$line method of depreciation.

c$.$ Sale of the machine on December $31,$ Year $2.$ Verdi sold the machine to another company for $$31,500.$