On January $2,2021,$ Athol Company bought a machine for use in operations. The machine has an estimated useful life of eight years and an estimated residual value of $$800.$ The company provided the following information:

Invoice price of the machine, $$55,400.$

Freight PAID by the VENDOR per sales agreement, $$830.$

Installation costs, $$1,730$ cash.

Cost of cleaning AFTER the installation $($the supplies, boxes, and other garbage$)$ that remained of the machine, $$100$ cash.

Payment of the machine's price was made as follows:

January $2$:

Issued $1,100$ common shares of Athol Company at $$4$ per share.

Signed a $$36,000$ note payable due April $16,2018,$ plus $10$ percent interest.

Balance of the invoice price to be paid in cash. The invoice allows for a $3$ percent CASH DISCOUNT if the cash payment is made by January $11.$

January $15$: Paid the balance of the invoice price in cash.

April $16$: Paid the note payable and interest in cash.

On June $30,2023,$ the company completed the replacement of a major part of the machine that cost $$12,500.$ This expenditure is expected to reduce the machine$$s operating costs, increase its estimated useful life by two years, and decrease its estimated residual value to $$300.$

Assume that on October $1,2028,$ the company decided to replace the machine with a newer, more efficient model. It then sold the machine to Sako Ltd$.$ on that date for $$25,000$ cash.

Required:

$1.$ Compute the acquisition cost of the machine.

$2.$ Prepare the journal entries to record the purchase of the machine and subsequent cash payments on January $15$ and April $16,2021.$

$3.$ Compute the depreciation expense for each of the years $2021,2022,$ and $2023,$ assuming the company$$s fiscal year ends on December $31.$ Use the straight$-$line depreciation method.

$4.$ Prepare the journal entry to record the sale of the machine on October $1,2028.($Hint: First determine the balance of the accumulated depreciation account on that date.$)$