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 $ 8,500 200 3,300 580 Machine B $27,400 600 1,600 530 Machine C $11,100 500 1,300 775 By the end of the first year, each machine had been operating 8,000 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 A B Estimates Life Residual Value Depreciation Method 5 years $ 400 Straight-line 40,000 hours 1,000 Units-of-production 6 years 1,800 Double-declining-balance Required 1 Required 2 Compute the cost of each machine Cost of Machine Machine A Machine B Machine C Journal entry worksheet Record the depreciation expense for the three used machines at the end of year 1. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal