Required: 1. What are the classifications of long-lived assets? Explain their differences. 2. Record the purchase on January 2 and the subsequent payment on January 12. Show computations. 3. Indicate the accounts, amounts, and effects (+ for increase and for decrease) of the purchase and subsequent cash payment on the accounting equation. Use the following structure: Date Assets Liabilities + Stockholders' Equity 4. Explain the basis you used for any questionable items. Explaining the Nature of a Long-Lived Asset and Determining and Recording the Financial Statement Effects of Its Purchase On January 2, Summers Company bought a machine for use in operations. The machine has an estimated useful life of eight years and an estimated residual value of $2,600. The company provided the following expenditures: a. Invoice price of the machine, $85,000. b. Freight paid by the vendor per sales agreement, $1,000. c. Installation costs, $2,400 paid in cash. d. Payment was made as follows: On January 2: . The installation costs were paid in cash. Summers Company common stock, par $1; 2,000 shares (market value, $3.50 per share). Note payable, $60,000; 11.5 percent (principal plus interest due April 1 of the current year). Balance of invoice price to be paid in cash by January 12. On January 12: Summers Company paid the balance due