Answer: Please refer to the explanation section
Explanation:
Date            Asset           =    Liabilities + stockholder's Equity
 1 January   Machine 24000+ = Payable(liability) 24000+
 2 January   Bank 8000 -    =  Payable (Liability) 8000 -
*3 January    Machine (freight cost) 700  +
                     Bank    700 -
*5 January    Machine (Installation cost) 2500 +
                     Bank    2500 -
**1 July           Bank    17440 -    =  Payable 17440 -
*freight cost and installation costs are capitalised to the cost of machinery. both freight costs and installation costs affect Machinery account and Bank Account. Machinery and Bank are assets therefore these transactions only affect the asset side of the equation
** amount payable + interest = (24000 - 8000) x 1.09 = 16000 x 1.09 = 17440
2. acquisition costs
Freight costs and installation costs are added (capitalised) to the costs of acquisition because they are costs necessary in delivering the asset to the clients premises and preparing the asset of its intended use
Cost Acquisition = 24000 + 700 + 2500 = 27200
Cost of the machinery = $ 27200
3. Effect of interest on cost of Machinery
The interest paid on the Balance payable has no effect on the cost of the machinery. interest paid only affects cost of the asset when it is capitalised. interest is capitalised when the company borrows funds to finance the construction of a long term asset or acquisition of a long term asset
4. Depreciation for 2013.
Depreciation = (Total cost of Machine - residual Value)/ useful life
depreciation = (27200 - 3200 = 24000)/10 = 2400
5. Book Value = Cost - Accumulated depreciation
    Accumulated depreciation = depreciation 2013 + depreciation 2014
   Accumulated depreciation = 2400 + 2400 = 4800
   Book Value = 27200 - 4800 = 22400