Sheffield Company purchased Machine #201 on May 1, 2020. The following information relating to Machine #201 was gathered at the end of May. Price $113,900 Credit terms 2/10, n/30 Freight-in $ 1,072 Preparation and installation costs $5,092 Labor costs during regular production operations $14,070 It is expected that the machine could be used for 10 years, after which the salvage value would be zero. Sheffield intends to use the machine for only 8 years, however, after which it expects to be able to sell it for $2,010. The invoice for Machine #201 was paid May 5. 2020. Sheffield uses the calendar year as the basis for the preparation of financial statements