At the beginning of the year, $CCZ$ Corporation bought three used machines from Pequita Compression Incorporated. The machines

Immedlately were overhauled, Installed, and started operating. Because the machines were different from each other, each was

recorded separately in the accounts.

Cost of the asset

Installation costs

Renowation costs prior to use

Repairs after production began

By the end of the first year, each machine had been operating $6,900$ hours.

Required:

$1-$a$.$ Compute the cost of each machine.

$1-$b$.$ Which of the following should be capltalized? $($Select all that apply.$)$

Renovation costs

Installation costs

Purchase costs

Repair cost

Depreciation costs

$2$ Prepare the Journal entry to record depreclatlon 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.$)$

Journal entry worksheet

A$.$

Record the entry for depreciation expense at the end of year $1.$

Note: Enter dehits betore cred ts$.$