Theo Company purchases a new automated laser cutting machine. The invoice price for the machine is $125,000; shipping was $1,500; wiring and other preparation is $2,000; materials used to calibrate the machine are $800; the first months interest charges on the loan are $1,400. What is the amount that will be recorded as the cost of the machine?

		a) $129,300
		b) $125,000
		c) $130,700
		d) $126,500

Ellis Corporation purchased a new delivery truck on January 6 for $30,000. It is estimated to have a useful life of five years and a salvage value of $4,000. What is the first years depreciation using the double declining balance method?

		d) $6,000
		a) $12,000
		c) $5,200
		b) $10,400