Swanson Hiller, Inc., purchased a new machine on September 1 of the current year at a cost of $138,000.

Swanson & Hiller, Inc., purchased a new machine on September 1 of the current year at a cost of $138,000. The machine's estimated useful life at the time of the purchase was five years, and its residual value was $8,000. The company reports on a calendar year basis.