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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 $$1,600.$ The company provided the following information:

Invoice price of the machine, $$71,600.$

Freight paid by the vendor per sales agreement, $$900.$

Installation costs, $$2,200$ cash.

Cost of cleaning up the supplies, boxes, and other garbage that remained after the installation of the machine, $$140$ cash.

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

January $2$:

Issued $1,150$ common shares of Athol Company at $$4$ per share.

Signed a $$39,000$ note payable due April $16,2018,$ plus $8$ percent interest.

Balance of the invoice price to be paid in cash. The invoice allows for a $2$ 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 $$12,750.$ This expenditure is expected to reduce the machine$$s operating costs, increase its estimated useful life by two years, and decrease its estimated residual value to $$1,100.$

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 $$23,600$ 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 $16,2021.($Do not round intermediate calculations and round your final answers to the nearest dollar amount. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$3.$ 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. $($Do not round intermediate calculations and round your final answers to the nearest dollar amount.$)$

$4.$ 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.$)($Do not round intermediate calculations and round your final answers to the nearest dollar amount. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

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