On January $2,2021,$ Athol Company bought a machine for use in operations. The machine has an estimated useful life of eight years

and an estimated residual value of $$1,550.$ The company provided the following information:

a$.$ Invoice price of the machine, $$71,000.$

b$.$ Freight paid by the vendor per sales agreement, $$830,$

c$.$ Installation costs, $$1,800$ cash.

d$.$ Cost of cleaning up the supplies, boxes, and other garbage that remained after the installation of the machine, $$105$ cash.

e$.$ Payment of the machine's price was made as follows:

January $2$ :

Issued $1,150$ common shares of Athol Company at $$5$ per share.

Signed a $$42,000$ note payable due April $16,2018,$ plus $12$ percent interest.

Balance of the invoice price to be paid in cash. The inwoice allows for a $2$ percent cash discount if the cash payment is made by

January $11.$

January $15$: Paid the balance of the invoice price in cash.

Aprit $16.$ Paid the note payable and interest in cash.

f$.$ On June $30,2023,$ the company completed the replacement of a major part of the machine that cost $$12,450.$ This expenditure is

expected to reduce the machine's operating costs, increase its estimated useful life by two years, and decrease its estimated

residual value to $$1,050.$

g$.$ Assume that on October $1,2028,$ the company decided to replace the machine with a newer, more efficlent model, it then sold the

machine to Sako Ltd$.$ on that date for $$22\mathrm{.}200$ cash.

Required:

Compute the acquisition cost of the machine

Answer is complete but not entirely correct.

transactionievent, select $"$No journal entry requiled" in the first account field.$)$

Compute the depreciation expense for each of the years $2021,2022,$ and $2023,$ assuming the company's fiscal year ends on

December $31.$ Use the straight$-$line depreciation method. $($Do not round intermediate calculations and round your final answers to

the nearest dollar amount.$)$

Answer is complete but not entirely correct.

Prepare the journal enty to record the sale of the machine on October $1.2028.($Hint First determine the balance of the

sccumulated degreciotion account on that date.$][$Do not round intermediate calculations and pound your final answers to the

nearest dollar amount. If no entry is required for a transaction$/$event$,$ spleer $"$No journal entry required" in the first account field.

Answer is complete but not entirely correct.