The operations team of H&S Limited suggested that some machinery must be replaced since it is deteriorating the operational efficiency of the business. Therefore, the fixed assets manager decided to purchase a new machine at the cost of $2 500 000 on the 1^st day of July 2020. Additionally, the company paid the freight charges of $42 500. The machine arrived at the plant in good condition and was installed immediately. The installation charges were $57 500, and these charges were paid immediately. The fixed assets manager reveals that the estimated useful life of this machine is ten years.

Required:

Based on the above information, calculate the machine's total cost [2 Marks]. Then, calculate the depreciation expenses that should be recorded on the 30^th day of June 2021. For this calculation, use the straight-line method [3 Marks]. Also, calculate the balance of accumulated deprecation at the end of the eighth year [2 Marks].