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	$	9,200		$	38,400		$	22,200
Installation costs		900			2,300			1,400
Renovation costs prior to use		700			1,900			2,400
Repairs after production began		700			800			900

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:

	Estimates
Machine	Life		Residual Value				Depreciation Method
A	5	years		$	1,200		Straight-line
B	20,000	hours			1,600		Units-of-production
C	10	years			1,600		Double-declining-balance