AP8-3A (Basket purchase and depreciation) On March 20, 2020, Fine Touch Corporation purchased two machines at auction for a combined total cost of $236,000. The machines were listed in the auction catalogue at $110,000 for machine X and $155,000 for machine Y. Immediately after the auction, Fine Touch had the machines professionally appraised so it could increase its insurance coverage. The appraisal put a fair value of S105,000 on machine X and $160,000 on machine Y. On March 24, Fine Touch paid a total of $4,500 in transportation and installation charges for the two machines. No further expenditures were made for machine X, but $6,500 was paid on March 29 for improvements to machine Y. On March 31, 2020, both machines were ready to be used. The company expects machine X to last five years and to have a residual value of $3,800 when it is removed from service, and it expects machine Y to be useful for eight more years and have a residual value of $14,600 at that time. Due to the different characteristics of the two machines, different depreciation methods will be used for them: machine X will be depreciated using the double-diminishing-balance method and machine Y using the straight-line method. Required Prepare the journal entries to record the transactions listed below. (Round to the nearest whole percentage.) a. The purchase of the machines, indicating the initial cost of each b. The transportation, installation, and improvement costs for each machine c. The depreciation expense to December 31, 2020, for each machine AP8-3A (Basket purchase and depreciation) On March 20, 2020, Fine Touch Corporation purchased two machines at auction for a combined total cost of $236,000. The machines were listed in the auction catalogue at $110,000 for machine X and $155,000 for machine Y. Immediately after the auction, Fine Touch had the machines professionally appraised so it could increase its insurance coverage. The appraisal put a fair value of S105,000 on machine X and $160,000 on machine Y. On March 24, Fine Touch paid a total of $4,500 in transportation and installation charges for the two machines. No further expenditures were made for machine X, but $6,500 was paid on March 29 for improvements to machine Y. On March 31, 2020, both machines were ready to be used. The company expects machine X to last five years and to have a residual value of $3,800 when it is removed from service, and it expects machine Y to be useful for eight more years and have a residual value of $14,600 at that time. Due to the different characteristics of the two machines, different depreciation methods will be used for them: machine X will be depreciated using the double-diminishing-balance method and machine Y using the straight-line method. Required Prepare the journal entries to record the transactions listed below. (Round to the nearest whole percentage.) a. The purchase of the machines, indicating the initial cost of each b. The transportation, installation, and improvement costs for each machine c. The depreciation expense to December 31, 2020, for each machine