On May 19, 2020, Sinnott Corporation purchased two pieces of used equipment for $650,000. Sinnott had been trying to acquire be pieces of equipment for some time. The seller had advertised the processing equipment for $381,800 and the packaging equipment for $293,200. Sinnott was able to negotiate a package deal from the seller for buying both pieces. Immediately after the purchase,
Sinnott had the equipment appraised so it could increase its insurance coverage. The appraisal indicated that the fair value of the
processing equipment was $3/9.164, while the packaging equipment had a fair value of 3286,036 Sinnott paid $20,500 in transportation costs to get both pieces of equipment to the company's manufacturing facility. Sinnott also p $5,300 for installation charges for the processing equipment and $1,800 in installation charges for the packaging equipment. All oft
installation work was completed on May 28, 2020, and Sinnott began to use the equipment. Sinnott's management expects that the processing equipment will have a useful life of six years and a residual value of $39.725. The packaging equipment is expected to have a useful life of five years and a residual value of $18.315 at that time. Sinnott uses the
straight-line method for depreciating its equipment. Prepare the journal entry to record the purchase of the machines, indicating the initial cost of each.