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.

	Machine A			Machine B			Machine C
Amount paid for asset	$	21,300		$	11,800		$	11,500
Installation costs		1,150			1,000			300
Renovation costs prior to use		950			800			800
Repairs after production began		320			2,600			680

By the end of the first year, each machine had been operating 4,000 hours.

Required:
1.	Compute the cost of each machine.

Required:
1.	Compute the cost of each machine.

Machine A- ?

Machine B- ?

Machine 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			1,500		Units-of-production
C	10 years			1,500		Double-declining-balance

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1