Question: (7 marks) The table below presents the data related to the purchase of a machine by Burleigh Waters Limited. The company decided to use the

(7 marks) The table below presents the data related to the purchase of a machine by Burleigh Waters Limited. The company decided to use the straight-line method of depreciation since it is expected that the pattern of economic benefits flow towards the entity remains constant during this machine's useful life of ten years. Further, it is expected that the residual value of this machine will be $2 857. Ignore GST. Required: a) What is the accounting treatment of the cost of transit insurance? Determine the cost of the machine ANSWER a): (3 marks) b) Calculate annual depreciation (2 marks)

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