At the beginning of the year, Maroon Industries bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below.

Cost of the asset	$9,800
Installation costs	880
Renovation costs prior to use	840
Repairs after production began	670

Required:

1. Compute the amount to be capitalized for Machine A.

2. Compute year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 years and $1,000 residual value.

3. Prepare the journal entry to record year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 years and $1,000 residual value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

4. Compute year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $45,360, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations.)

5. Prepare the journal entry to record year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $45,360, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

6. Compute years 1 and 2 double-declining-balance depreciation expense for Machine C, which has a cost of $26,200, an estimated life of 10 years, and $1,400 residual value.

7. Prepare the journal entry to record year 2 double-declining balance depreciation expense for Machine C, which has a cost of $26,200, an estimated life of 10 years, and $1,400 residual value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

*I would love an explanation going through these questions, so I can understand how to do the problem :)*