Antique Furniture Company decided to purchase a new furniture polishing machine for its store in New York City. After a long search, it found the appropriate polisher in Chicago. The machine costs $75,000 and has an estimated 10 year life and no salvage value. Antique Furniture Company made the following additional expenditures with respect to this purchase:
|
Sales tax |
$4,000 |
|
Delivery costs (FOB shipping point) |
1,500 |
|
Installation costs |
2,200 |
|
Painting of machine to match the decor. |
300 |
1. What is the cost of the machine to Antique Furniture Company?
2. What is the amount of the first full year s depreciation if Antique uses the straight line method?