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 Machine A $10,120 1,660 660 Machine B $31,980 2,160 1,460 460 Machine C $22,600 860 Installation costs Renovation costs prior to use Repairs after production began 1,660 760 560 By the end of the first year, each machine had been operating 7,600 hours. Required: 1-a. Compute the cost of each machine. Machine B Total Total cost 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 Residual Machine Life Depreciation Method Value A B 4 years 33,600 hours 5 years $1,000 2,000 1,400 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. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal