Sheridan Company purchased Machine #201 on May 1, 2025. The following information relating to Machine #201 was gathered at the end of May. Price $96,900 Credit terms Freight-in 2/10, n/30 $912 Preparation and installation costs $4,332 Labor costs during regular production operations $11,970 It is expected that the machine could be used for 10 years, after which the salvage value would be zero. Sheridan intends to use the machine for only 8 years, however, after which it expects to be able to sell it for $1,710. The invoice for Machine #201 was paid May 5, 2025. Sheridan uses the calendar year as the basis for the preparation of financial statements.