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Required information

$[$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 $$27,000.$ On the date of delivery,

January $2,$ the company paid $$9,000$ on the machine, with the balance on credit at $8$ percent interest due in six months.

On January $3,$ it paid $$800$ for freight on the machine. On January $5,$ Ashkar paid installation costs relating to the machine

amounting to $$2,100.$ 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 $$4,600.$

Required:

Indicate the effects of each transaction on the accounting equation.

Note: Enter decreases to account categories as negative amounts. If the transaction does not impact the accounting equation

choose $"$No effect" in the first column under "Assets".

$1.$ Indicate the effects of each transaction on the accounting equation.

$2.$ Compute the acquisiton cost of the machine.

$3.$ Compute the depreciation expense to be reported for Year $1.$

$4.$ Determine the net book value of the machine at the end of Year $2.$