At the beginning of the year, Dimitrius Affiliates bought a shed, a machine, and a trailer.

The shed initially cost $$21,000$ but had to be renovated at a cost of $$680.$ The shed was expected to last $7$ years, with a residual value of $$1,800.$ Repairs costing $$500$ were incurred at the end of the first year of use.

The machine cost $$11,600,$ and is estimated to have a total life of $40,000$ hours and residual value of $$900.$ The machine was actually used $2,000$ hours in year $1$ and $4,000$ hours in year $2.$

The trailer cost $$12,000$ and was expected to last $4$ years, with a residual value of $$2,000.$

Required:

$1.$ Compute the amount to be capitalized for the shed.