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?