At the beginning of the year, Young Company bought three used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts.

	Machine A			Machine B			Machine C
Amount paid for asset	$	7,850		$	26,100		$	9,800
Installation costs		450			850			750
Renovation costs prior to use		2,000			1,450			1,750
Repairs after production began		450			400			450

By the end of the first year, each machine had been operating 6,000 hours.

Required:

1. Compute the cost of each machine.
2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: TIP: Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value).

	Estimates
Machine	Life		Residual Value				Depreciation Method
A	5	years		$	600		Straight-line
B	50,000	hours			400		Units-of-production
C	6	years			2,100		Double-declining-balance

At the beginning of the year, Young Company bought three used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts Machine A Machine B Machine C ount paid for asset Installation costs Renovation costs prior to use Repairs after production began $7,850 450 2,000 450 $26,100 850 1,450 400 $9,800 750 1,750 450 Am By the end of the first year, each machine had been operating 6,000 hours Required: 1. Compute the cost of each machine 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: TIP: Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value) Estimates Machine Life ResidualValue Depreciation Method yearS 50,000 hours 6 years $ 600 400 2,100 Straight-line Units-of-production Double-declining-balance Complete this question by entering your answers in the tabs below Required 1 Required 2 Compute the cost of each machine Cost of Machine Machine A Machine B Machine C Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: TIP: Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Show less View transaction list Journal entry worksheet Record the depreciation expense for the three used machines at the end of year 1 Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal