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 $ 9,880 1,540 540 440 Machine B $34,260 2,040 1,340 340 Machine C $21,400 740 1,540 640 By the end of the first year, each machine had been operating 6,400 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 A B C Life 4 years 32,400 hours 5 years Residual Value $1,000 2,000 1,500 Depreciation Method Straight-line Units-of-production Double-declining-balance View transaction list Journal entry worksheet Record the entry for depreciation expense at the end of year 1. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal