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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
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 $26,000. On the date of delivery, January 2, the company paid $6,000 on the machine, with the balance on credit at 12 percent interest due in six months. On January 3, it paid $1,000 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 machi 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 $3,000. 2. Compute the acquisition cost of the machine. Acquisition Cost of the Machine Acquisition cost $
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