At the beginning of the year, CCZ Corporation bought three used machines from Pequita Compression Incorporated. The machine 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 $10,200 Machine B $35,700 Machine C $23,000 1,700 2,200 900 700 1,500 600 500 1,700 800 By the end of the first year, each machine had been operating 8,000 hours. Required: 1-a. Compute the cost of each machine. Machine A B Total Total cost $ 69 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 Residual Value Depreciation Method ABC A 4 years 34,000 hours $1,000 Straight-line 2,000 Units-of-production 5 years 1,500 Double-declining-balance