You have recently graduated from WWU and are working as an auditor at a CPA firm. Your current client, a medium-sized, locally-owned business, is seeking a bank loan and has requested your firm to audit its 2023 financial statements. During your audit, you uncover the following information: 1) A large piece of equipment was purchased on January 1, 2023, for $24,000 and was charged to repairs expense. The equipment was estimated to have a life of 8 years and no residual value. The straight-line method is used for depreciating this type of equipment. 2) A $12,000 insurance premium paid on July 1, 2022, for a policy that expires on June 30, 2025, was charged to insurance expense. No further entries have been made to date to account for this insurance policy. 3) A trademark was acquired at the beginning of 2022 for $40,000. No amortization has been recorded since its acquisition. The trademark will be amortized over 40 years. 4) The company purchased a machine on January 1, 2021, for $105,000. At that time, the machine was estimated to have a life of 4 years and a salvage value of $25,000. The straight-line method for depreciation is being used. On