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	$	9,800		$	27,500		$	21,000
Installation costs		1,500			2,000			700
Renovation costs prior to use		500			1,300			1,500
Repairs after production began		400			300			600

By the end of the first year, each machine had been operating 6,000 hours. Required: 1-a. Compute the cost of each machine.

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

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	32,000 hours			2,000		Units-of-production
C	5 years			1,300		Double-declining-balance