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

Machine AMachine BMachine CAmount paid for asset$34,700$36,500$21,800Installation costs6001,3001,300Renovation costs prior to use3,5001,2002,900

By the end of the first year, each machine had been operating 5,300 hours.

7.

value:

1.00 points

Required information

Required:1.Compute the cost of each machine.

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8.

value:

1.00 points

Required information

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

MachineLifeResidual ValueDepreciation MethodA10 years$1,800Straight-lineB71,000 hours3,500Units-of-productionC8 years2,500Double-declining-balance