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	$	10,160		$	28,760		$	22,800
Installation costs		1,680			2,180			880
Renovation costs prior to use		680			1,480			1,680
Repairs after production began		580			480			780

By the end of the first year, each machine had been operating 7,800 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	33,800 hours			2,000		Units-of-production
C	5 years			1,300		Double-declining-balance