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	$	10,600		$	39,800		$	23,600
Installation costs		850			3,700			2,800
Renovation costs prior to use		650			3,300			3,800
Repairs after production began		500			700			2,300

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		$	2,600		Straight-line
B	20,000	hours			2,200		Units-of-production
C	10	years			1,400		Double-declining-balance