In: Accounting
O’Connor Company ordered a machine on January 1 at a purchase price of $90,000. On the date of delivery, January 2, the company paid $23,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $900 for freight on the machine. On January 5, O’Connor paid cash for installation costs relating to the machine amounting to $5,400. On December 31 (the end of the accounting period), O’Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $9,600.
Required: