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 Machine A Machine B Machine C Cost of the asset $ 10,500 $ 39,700 $ 23,500 Installation costs 800 3,600 2,700 Renovation costs prior to use 600 3,200 3,700 Repairs after production began 800 600 2,200 By the end of the first year, each machine had been operating 8,000 hours Required Compute the cost of each machine Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following Estimates Machine Life Residual Value Depreciation Method A 5 years $ 2,500 Straight line B 20,000 hours 2,100 Units of production C 10 years 2,000 Double declining balance a Compute the cost of each machine Cost of Machine Machine A Machine B Machine C b 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 Do not round intermediate calculations )

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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.

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.

	Machine A		Machine B		Machine C
Cost of the asset	$	10,500	$	39,700	$	23,500
Installation costs		800		3,600		2,700
Renovation costs prior to use		600		3,200		3,700
Repairs after production began		800		600		2,200

By the end of the first year, each machine had been operating 8,000 hours.

Required:

Compute the cost of each machine.
Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following:

	Estimates
Machine	Life		Residual Value			Depreciation Method
A	5	years		$	2,500	Straight-line
B	20,000	hours			2,100	Units-of-production
C	10	years			2,000	Double-declining-balance

a.Compute the cost of each machine.

	Cost of Machine
Machine A
Machine B
Machine C

b. 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. Do not round intermediate calculations.)