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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 Installation costs $ 44,000 $ 32,500 $ 7,200 2,100 1,100 1.100 2,500 2,600 2,500 Renovation costs prior to use By the end of the first year, each machine had been operating 6,700 hours. Calculate the total depreciation expense at the end of Year 1, assuming the following: ESTIMATES Residual Machine Life Depreciation Method A 10 years 68,000 hours Value $2,600 2,200 3,000 B Straight-line Units-of-production Double-declining-balance 4 years
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