Final answer:
The machine owned by Diaz Company represents the historical cost.
Step-by-step explanation:
The subject of this question is Business and the grade level is High School.
The machine owned by Diaz Company represents the historical cost of the machine. Historical cost refers to the original cost of acquiring the machine, which includes the purchase price and any additional costs incurred to put it in working condition.
Other options like replacement cost, market value, and salvage value are not relevant to the initial cost of the machine.