At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The machines immediately were overhauled, installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Machine A Machine B Machine C $10,600 $39,800 3,700 3,300 $23,600 2,800 3,800 Cost of the asset Installation costs 850 Renovation costs prior to use Repairs after production began 650 500 700 2,300 By the end of the first year, each machine had been operating 8,000 hours. Required: 1. Compute the cost of each machine. Cost of Machine A 121,100X 46,800 30,200 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following:(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Life 5 years 20,000 hours 10 years Estimates Residual Value $2,600 2,200 1,400 Machine Depreciation Method Straight-line Units-of-production Double-declining-balance Transaction General Journal Debit Credit 1 Depreciation Expense 23,700X Accumulated Depreciation - Machine A 23,700X Depreciation Expense 17,840X Accumulated Depreciation - Machine B 17,840 Depreciation Expense 6,040X Accumulated Depreciation - Machine C 6,040X ABC