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At the beginning of the year, Soldano.com bought machinery, shelving, and a forklift. The machinery initially cost $28,800 but had to be overhauled (at a

At the beginning of the year, Soldano.com bought machinery, shelving, and a forklift. The machinery initially cost $28,800 but had to be overhauled (at a cost of $1,840) before it could be installed (at a cost of $920) and finally put into use. The machinerys total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $430 in each year.

The shelving cost $9,700 and was expected to last 5 years, with a residual value of $680. The forklift cost $14,400 and was expected to last six years, with a residual value of $2,160.

4. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it.

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