Moore Company purchased an \(\$ 800,000\) welding machine to use in production of commercial tooling. The welding machine was expected to have a life of 10 years and a salvage value at time of disposition of \(\$ 50,000\). The company uses straight-line depreciation. In addition, the company paid annual property taxes on its factory building of \(\$ 85,000\). During the first quarter of the year, the machine produced 800 product units, of which 560 were sold.

a. What part of the \(\$ 885,000\) in costs (welding machine and property taxes) expired in the first quarter of the year?

b. Where would each of the amounts related to this machine appear on the financial statements at the end of the first quarter?