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 $25, 6e0 600 $9,300 500 Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began $7,600 200 1,500 400 1,2001,eee 325 350 By the end of the first year, each machine had been operating 7000 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 600 Straight-line 1,000 Units-of-production 2,0e0 Double-declining-balance 5 years 40,800 hours 6 years