On June 1, 2002. the Wilbur Corp. bought a machine for use in operations. The machine has an estimated useful life of six years and an estimated residual value of $2,000. The company provided the following expenditures:

a. Invoice price of the machine, $60,000.

b. Freight paid by the vendor per sales agreement, $650.

c. Installation costs, $ 1 ,500.

d. Payment of the $60,000 was made as follows:

On June 1

:

• Wilbur Corp. common stock, par $2; 2,000 shares (market value, $5 per share).

• Balance of the invoice price on a note payable, 1 2 percent due September 2, 2002 (principal plus interest).

On September 2:

• Wilbur Corp. paid the balance and interest due on the note payable.

Required: 1. What are the classifications of long-lived assets? Explain their differences. 2. Indicate the accounts, amounts, and effects ( + for increase and - for decrease) of the purchase and subsequent cash payment on the accounting equation. Use the following structure: 3. Explain the basis you used for any questionable items.

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Date Assets Liabilities Stockholders' Equity