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. By the end of the first year, each machine had been operating 7,000 hours. Required: 1-a. Compute the cost of each machine. 1-b. Which of the following should be capitalized? (Select all that apply.) \begin{tabular}{|l|} \hline Renovation costs \\ \hline Installation costs \\ \hline Purchase costs \\ \hline Repair cost \\ \hline Depreciation costs \\ \hline \end{tabular} Prepare the journal entry to record depreciation expense at the end of year 1 , assuming the following: (If no entry is required for a ansaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry for depreciation expense at the end of year 1. Note: Enter debits before credits. The machines were disposed of in the following ways: a. Machine A: This machine was sold on January 1 for $5,750 cash. b. Machine B: On January 1 , this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost. Required: 1. Prepare the journal entries related to the disposal of each machine at the beginning of the current year. Transaction "a" relates to the recording of the depreciation, and transaction " b " relates to the recording of the disposal of the machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Machine A - Jan. 1: Machine A - Jan. : Journal entry worksheet Note: Enter debits before credits. Machine B - January 1: Journal entry worksheet Note: Enter debits before credits. 2. This part of the question is not part of your Connect assignment