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. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began Machine A $10,180 1,690 690 590 Machine B $32,220 2,190 1,490 490 Machine C $ 22,900 890 1,690 790 By the end of the first year, each machine had been operating 7,900 hours. Required: 1-a. Compute the cost of each machine. Machine B Total Total cost $ 0 1-b. Which of the following should be capitalized? (Select all that apply.) Renovation costs Installation costs Purchase costs Repair cost 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 A Residual Value $1,000 2,000 1,400 4 years 33,900 hours 5 years Depreciation Method Straight-line Units-of-production Double-declining-balance B View transaction list Journal entry worksheet > A Record the entry for depreciation expense at the end of year 1. Note: Enter debits before credits. Debit Credit Transaction General Journal 1