Required information [The following information applies to the questions displayed below.) During Year 1, Ashkar Company ordered machine on January 1 at an invoice price of $29,000. On the date of delivery, January 2, the company paid $7,000 on the machine, with the balance on credit at 10 percent interest due in six months. On January 3, it paid $1,100 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,800. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $3,700. Required: 1. Indicate the effects of each transaction on the accounting equation. (Enter decreases to account categories as negative amounts. If the transaction does not impact the accounting equation choose "No effect" in the first column under "Assets".) Assets Liabilities Stockholders' Equity Date January 1 No effect January 2 Equipment 29,000 Short term note payable 22,000 1,100 January 3 Cash Equipment January 5 Cash Equipment July 1 Cash Short term note payable Interest expense 2. Compute the acquisition cost of the machine. X Answer is not complete. Acquisition Cost of the Machine Freight costs 1,100 Installation costs Acquisition cost $ 1,100 3. Compute the depreciation expense to be reported for Year 1. Depreciation expense 5. What would be the net book value of the machine at the end of Year 2? (Amounts to be deducted should be indicated by a minus sign.) Net book value of machine at end of Year 2 Net book value at end of year 2 $ 0