Part 2: Your employer buys a machine that has a list price of $275,000 and you...

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Part 2: Your employer buys a machine that has a list price of $275,000 and you are given a 10% discount. Sales tax is 5% on the purchase price and it costs $2,000 to install the machine, plus arrange separate electrical wiring. The owner of the company was showing off the new machine to some competitors and blew some wiring. It cost another $1,000 to repair the wiring caused by his party. a. What is the amount that will be debited to Machine as this purchase is recorded? b. Your Straight Line depreciation is based on a life of 10 years with zero residual. What is the Depreciation Expense for year 3? Remember, just that one year. c. After year 3, the boss loses interest and finds someone that will take the machine in as a trade in on another machine. The new machine has a price tag of $300,000. The salesman has offered $150,000 trade in on the boss's old toy and to trade straight across with the total cash to change hands of $150,000. Show the journal entry using the teacher's method and do not recognize any gain or loss: I have written the account names for you. Account New Machine Accumulated Depreciation Old Machine Cash Debit Credit Part 2: Your employer buys a machine that has a list price of $275,000 and you are given a 10% discount. Sales tax is 5% on the purchase price and it costs $2,000 to install the machine, plus arrange separate electrical wiring. The owner of the company was showing off the new machine to some competitors and blew some wiring. It cost another $1,000 to repair the wiring caused by his party. a. What is the amount that will be debited to Machine as this purchase is recorded? b. Your Straight Line depreciation is based on a life of 10 years with zero residual. What is the Depreciation Expense for year 3? Remember, just that one year. c. After year 3, the boss loses interest and finds someone that will take the machine in as a trade in on another machine. The new machine has a price tag of $300,000. The salesman has offered $150,000 trade in on the boss's old toy and to trade straight across with the total cash to change hands of $150,000. Show the journal entry using the teacher's method and do not recognize any gain or loss: I have written the account names for you. Account New Machine Accumulated Depreciation Old Machine Cash Debit Credit