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E8-4 Determining Financial Statement Effects of an Asset Acquitition and Depreciation Ashkar Company ordered a machine on January 1, 2013, at an invoice price of $21,000. On the date of delivery. January 2, 2013, the company paid 56,000 on the machine, with the balance on credit at 10 percent interest due in six months, On Janwary 3,2013, it paid $1,000 for freight on the machine. On January 5. Ashikar paid installation costs relating to the machine amounting to \$2,500. On July 1, 2013, the company paid the balance due on the machine plus the interest. On December 31, 2013 (the end of the aceounting neriod), Ashlar recorded depreciation on the machine using the straight-line method with an estimated uscful life of 10 years and an estimated residual value of 54,000 . Required: 1. Indicate the effects (accounts, amounts, and + or ) of each transaction on the accounting equation. Use the following schedule; (If the transaction does not impaet the acconeting equation choose "No effect" in the first column under "Asscts".) 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for 2013. 4. What would be the net book-value of the machine at the end of 2014 ? (Amounts to be deducted should be indicated by a minus sign.)

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