LO 9-2, 9-3 4. What should be ule DOOR E9-3 Determining Financial Statement Effects of an Asset Acquisition and Straight-Line Depreciation O'Connor Company ordered a machine on January 1 at a purchase price of $40,000.0 delivery, January 2, the company paid $10,000 on the machine and signed a long-term for the balance. On January 3, it paid $350 for freight on the machine. On January 5, O'C cash for installation costs relating to the machine amounting to $2,400. On December 31 of the accounting period), O'Connor recorded depreciation on the machine using the sto method with an estimated useful life of 10 years and an estimated residual value of $4.750 000. On the date of ong-term note payable 5.0Connois December 31 (the end ine using the straight-line Required: 1. Indicate the effects (accounts, amounts, and + or --) of each transaction (on January 1.22 and 5) on the accounting equation. Use the following schedule: Date Assets Liabilities + Stockholders' Equity 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year