At the beginning of the year, Red Sun Martial Arts Centre bought three used fitness machines from Hangar Inc. for a total cash price of $$38,000.$ Transportation costs on the machines were $$2,000.$ The machines were immediately overhauled and installed, and started operating. The machines were different; therefore, each had to be recorded separately in the accounts. An appraiser was requested to estimate their market value at the date of purchase $($prior to the overhaul and installation$).$ The carrying amounts shown on Hangar$$s books are also available. The carrying amounts, appraisal results, installation costs, and renovation expenditures follow:

Machine A Machine B Machine C

Carrying amount on Hangar's books $ $8,000$ $ $29,000$ $ $6,000$

Appraisal value $9,50032,0008,500$

Installation costs $300500200$

Renovation costs prior to use $2,000400600$

By the end of the first year, each machine had been operating $8,000$ hours.

Required:

$1.$ Compute the cost of each machine by making a supportable allocation of the total cost to the three machines.

$2.$ Prepare the entry to record depreciation expense at the end of year $1,$ assuming the following: $($Do not round intermediate calculations. 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 $5$ years $ $1,500$ Straight$-$line

B $40,000$ hours $900$ Units$-$of$-$production

C $4$ years $2,000$ Double$-$declining$-$balance