Required information

Skip to question

$[$The following information applies to the questions displayed below.$]$

During Year $1,$ Ashkar Company ordered a machine on January $1$ at an invoice price of $$24,000.$ On the date of delivery, January $2,$ the company paid $$8,000$ on the machine, with the balance on credit at $9$ percent interest due in six months. On January $3,$ it paid $$600$ for freight on the machine. On January $5,$ Ashkar paid installation costs relating to the machine amounting to $$2,800.$ On July $1,$ the company paid the balance due on the machine plus the interest. On December $31($the end of the accounting period$),$ Ashkar recorded depreciation on the machine using the straight$-$line method with an estimated useful life of $10$ years and an estimated residual value of $$3,800.$