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 $9,600 850 650 700 Machine B $38,800 2,700 2,300 700 Machine C $22,600 1,800 2,800 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. 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: Estimates Machine Life A 5 years Residual Value $1,600 1,200 2,000 Depreciation Method Straight-line Units-of-production Double-declining-balance B 20,000 hours 10 years Required 1 Required 2 Compute the cost of each machine. Cost of Machine Machine A $ 11,100 Machine B $ 48,300 Machine C $ 27,200 View transaction list View journal entry worksheet X No Transaction General Journal Debit Credit 1 1 Depreciation Expense