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E9-3 Determining Financial Statement Effects of an Asset Acquisition and Straight-Line Depreclation [LO 9-2, LO 9-3] O'Connor Company ordered a machine on January 1 at a purchase price of $45,000 On the date of delivery, January 2, the company paid $11,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $500 for freight on the machine. On January 5, O'Connor paid cash for instalation oosts relating to the machine amounting to $2,700, On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-ine method with an estimated useful ife of 10 years and an estimated residual valve of $4,800 Required: 1. Indicate the effects (acoounts, amounts, and for increase for decrease) of each trarsacion (on January 1, 2.3, and 5) on the acoounting oquation (Enter any decreases to account balances with a minus sign.) Answer is not complete 45,000 Accounts Payable (11.000)Nolos Payable (ong-torm) 45,000 34,000 0 01 Equipment Cash 02 (500) 0 Cash O (2.700) 05 Equipment 2. Compuie the acquisition cost of the machine O Answer is complete and correct. $ 48,200