Recording Asset Acquisition, Depreciation, and Disposal (FSET) On January 2, Year 1, Verdi Company acquired a machine for $48,000 cash. In addition to the purchase price, Verdi spent $1,000 cash for shipping and installation, and $1,400 cash to calibrate the machine prior to use. The company estimates that the machine has a useful life of 3 years and residual value of $3,900. Use the financial statement effects template to show how the following activities affect the balance sheet