At the begining or the year, tables the bought the used much from Sam Corporation the forat cash price of $67,000 Transportation costs in the machines wer $3,000. 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 fair value at the date of purchase (prior to the overhaul and installation). The carrying amounts shown on Saturn's books are also available. The carrying amounts, appraisal results, installation costs, and renovation expenditures follow: Machine A Machine Machine C Carrying amount on Santoro's books $10.500 $28,000 $25,000 Appraisal value 11300 32,000 28,500 Installation costs 800 1100 1,100 Renovation costs prior to use 600 1,400 1.600 By the end of the first year, each machine had been operating 7,000 hours Required 1 Compute the cost of each machine by making a supportable abocation of the total cost to the three machines (round your calculations to two decimal places). Explain the rationale for the allocation basis used 2 Prepare the entry to record depreciation expense at the end of year 1, assuming the following Estimates Machine Life Residual Value Depreciation Method A 4 years $1.000 Straight line B 35.000 hours 2000 Units of production Swara 1.500 Double declining balance