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	$	9,600		$	38,800		$	22,600
Installation costs		850			2,700			1,800
Renovation costs prior to use		650			2,300			2,800
Repairs after production began		700			700			1,300

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

Required:
1.	Compute the cost of each machine.

	Cost of Machine
A
B
C

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. Do not round intermediate calculations.)

Estimates

Machine

Life

Residual Value

Depreciation Method

A

5 years

$

1,600

Straight-line

B

20,000 hours

1,200

Units-of-production

C

10 years

2,000

Double-declining-balance

Journal Entry Worksheet

1. Record the depreciation expense for the three used machines at the end of year 1.

Transaction	General Journal	Debit	Credit
1