At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Brunswick Corporation. The machines immediately were overhauled, installed, and started operating. The machines were different; therefore, each had to be recorded separately in the accounts.

	Machine A		Machine B		Machine C
Invoice price paid for asset	$	20,400	$	37,300	$	22,100
Installation costs		2,300		2,000		600
Renovation costs prior to use		2,900		2,500		1,700

By the end of the first year, each machine had been operating 5,400 hours.

Required:

1. Compute the cost of each machine.

Machine A $25,600

Machine B $41,800

Machine C $24,400

2. Prepare the 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.)

	ESTIMATES
Machine		Life	Residual Value		Depreciation Method
A		9 years	$1,300		Straight-line
B		77,000 hours	3,300		Units-of-production
C		8 years	3,100		Double-declining-balance

FILL IN THE JOURNAL ENTRY

No	Transaction	General Journal	Debit	Credit
1	1