At the beginning of the year, CCZ Corporation bought three used machines from Pequita Compression Incorporated. The machines immediately were overhauled, installed, and started operating. Because the machines were different from each other, each was recorded separately in the accounts.

	Machine A			Machine B			Machine C
Cost of the asset	$	9,940		$	34,530		$	21,700
Installation costs		1,570			2,070			770
Renovation costs prior to use		570			1,370			1,570
Repairs after production began		470			370			670

By the end of the first year, each machine had been operating 6,700 hours.

Required: 1-a. Compute the cost of each machine.

Machine
	A	B	C	Total
Total cost				$0

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

Renovation Costs

Installation Costs

Purchase Costs

Repair Costs

Depreciation Costs

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.)

	Estimates
Machine	Life	Residual Value				Depreciation Method
A	4 years	$		1,000		Straight-line
B	32,700 hours			2,000		Units-of-production
C	5 years			1,500		Double-declining-balance

Journal entry worksheet

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

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1