ANSWER THIS CORRECTLY ASAP At the beginning of the year, Red Sun Martial Arts Centre bought three used fitness machines from Hangar Inc. for a total cash price of

$$38,000.$ Transportation costs on the machines were $$2,000.$ The machines were immediately overhauled and installed, and started

operating. The machines were different; therefore, each had to be recorded separately in the accounts. An appraiser was requested to

estimate their market value at the date of purchase $($prior to the overhaul and installation$).$ The carrying amounts shown on Hangar's

books are also available. The carrying amounts, appraisal results, installation costs, and renovation expenditures follow:

By the end of the first year, each machine had been operating $8,000$ hours.

Required:

Compute the cost of each machine by making a supportable allocation of the total cost to the three machines.

Cost of each machine

Prepare the entry to record depreciation expense at the end of year $1,$ assuming the following: $($Do not round intermediate

calculations. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

A

Record depreciation expense.

Note: Enter debits before credits.