compute the amount recorded as the cost of a new machine given the following payment 647854

1. Compute the amount recorded as the cost of a new machine given the following payments related to its purchase: gross purchase price, $700,000; sales tax, $49,000; purchase discount taken, $21,000; freight cost — terms FOB shipping point, $3,500; normal assembly costs, $3,000; cost of necessary machine platform, $2,500; cost of parts used in maintaining machine, $4,200.

2. On January 1, 2011, a company pays $77,000 to purchase office furniture with a zero salvage value. The furniture’s useful life is somewhere between 7 and 10 years. What is the year 2011 straight line depreciation on the furniture using (a) a 7 year useful life and (b) a 10 year useful life?