Teal Company purchased Machine #201 on May 1, 2017. The following information relating to Machine #201 was gathered at the end of May. Price: Credit terms Freight-in $108,800 2/10, n/30 $1,024 Preparation and installation costs $4,864 Labor costs during regular production operations $13,440 It is expected that the machine could be used for 10 years, after which the salvage value would be zero. Teal intends to use the machine for only 8 years, however, after which it expects to be able to sell it for $1,920. The invoice for Machine #201 was paid May 5, 2017. Teal uses the calendar year as the basis for the preparation of financial statements.