At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began Machine A $10,400 1,000 800 Machine B $39,600 3,500 3,100 1,000 Machine C $23, 400 2,600 3,600 2,100 700 By the end of the first year, each machine had been operating 8,000 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: Machine Estimates Residual value Depreciation Method 5 years $2,400 Straight line 20,000 hours 2.000 Units of production 10 years 1.900 Double declining balance