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 $ 9,920 1,560 560 Machine $27,920 2,060 1,360 360 Machine $21,600 760 1,560 660 460 By the end of the first year, each machine had been operating 6,600 hours, Required: 1. Compute the cost of each machine. 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: Estimates Machine Life A B 4 years 32,600 hours 5 years Residual Value $1,000 2,000 1,300 Depreciation Method Straight line Units-of-production Double-declining balance