On october 1, 20x4, shaw corp. purchased a machine for $126,000 that was placed in service on november 30, 20x4. shaw incurred additional costs for this machine, as follows: shipping $ 3,000 installation 4,000 testing 5,000 in shaw's december 31, 20x4 balance sheet, the machine's cost should be reported as: a. $126,000b. $129,000c. $133,000d. $138,000

In its first year of operations, sunland company recognized $30,000 in service revenue, $8,100 of which was on account and still outstanding at year-end. the remaining $21,900 was received in cash from customers. the company incurred operating expenses of $18,600. of these expenses, $12,880 were paid in cash; $5,720 was still owed on account at year-end. in addition, sunland prepaid $3,270 for insurance coverage that would not be used until the second year of operations. (a) calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.