At the beginning of the year, Phantom Industries bought machinery, shelving, and a forklift. The machinery initially cost $$32,400$ but had to be overhauled $($at a cost of $$2,560)$ before it could be installed $($at a cost of $$1,280)$ and finally put into use. The machinery$$s total life was estimated as $40,000$ hours, with an estimated residual value of $$1,000.$ The machinery was actually used $5,000$ hours in year $1$ and $7,000$ hours in year $2.$ Repair costs were $$520$ in each year.

The shelving cost $$10,150$ and was expected to last $5$ years, with a residual value of $$770.$ The forklift cost $$18,450$ and was expected to last six years, with a residual value of $$2,340.$

Required:

$1.$ Compute the amount to be capitalized for the machinery.