At the beginning of the year, Oakmont Company bought three used machines from American Manufacturing, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. $20,700 Machine A $ 20,700 850 650 520 Machine B $11,200 1,000 800 2,000 Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began $11,200 Machine C $ 10,900 300 700 580 $10,900 By the end of the first year, each machine had been operating 4,000 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: Machine Estimates Life Residual Value 5 years $1,600 20,000 hours 1,600 10 years 1,600 Depreciation Method Straight-line Units-of-production Double-declining-balance MU Required 1 Required 2 Compute the cost of each machine Cost of Machine Machine A Machine B Machine C Journal entry worksheet Record the depreciation expense for the three used machines at the end of year 1 assuming each machine has its own accumulated depreciation account. Note: Enter debits before credits. Transaction General Journal Debit Credit