During Year 1 Askar Company ordered a machine on January 1 at invoice price of $27,000. On the date of delivery, January 2 the company paid $6.000 on the machine, with the balance on credit at 10 percent interest due in six months. On January 3 it paid $1, 300 for freight on the machine. On January 5, Askar paid installation costs relating to the machine amounting to $2, 700 On July 1 the company paid the balance on the machine plus the interest. On December 31 (the end of the accounting period) Askar recorded depreciation on the machine using the straight line method with an estimated useful life of 10 years and an estimated residual value of $4, 400. During Year 1 Askar Company ordered a machine on January 1 at invoice price of $27,000. On the date of delivery, January 2 the company paid $6.000 on the machine, with the balance on credit at 10 percent interest due in six months. On January 3 it paid $1, 300 for freight on the machine. On January 5, Askar paid installation costs relating to the machine amounting to $2, 700 On July 1 the company paid the balance on the machine plus the interest. On December 31 (the end of the accounting period) Askar recorded depreciation on the machine using the straight line method with an estimated useful life of 10 years and an estimated residual value of $4, 400