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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
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 | $ | 32,300 | $ | 32,300 | $ | 23,400 |
Installation costs | 2,300 | 2,400 | 1,100 | |||
Renovation costs prior to use | 4,000 | 1,000 | 1,900 | |||
By the end of the first year, each machine had been operating 6,500 hours.
1. Compute the cost of each machine.
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