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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.

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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. Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began Machine A 60,600 100 3,500 600 Machine B $27,600 700 1,200 550 Machine a $11,300 600 1,600 825 By the end of the first year, each machine had been operating 5,000 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) Machine Satimaton Lico Residual Value Depreciation Method 5 years 6 600 Straight-line 20.000 hours 400 Units-of-production 6 years 2,400 Double-declining-balance c Complete this question by entering your answers in the tabs below Required: Required 2 Compute the cost of each machine Cost of Machine Machine Machine B Machine C Route Required 2 > -UM MA www** formula for double-declining balance uses cost minus accumulated depreciation (not residual value). Machine A B Estimate Life Residual Value 5 years $ 600 20,000 hours 400 6 years 2,400 Depreciation Method Straight-line Units-of-production Double-declining-balance 32 Complete this question by entering your answers in the tabs below Required 1 Required 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). (If no entry is required for a transaction/event, select "No Doumal Entry Required in the first account field. Do not round intermediate calculations.) Show less es View transaction list Journal entry worksheet

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