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 $7,700 300 1,700 420 Machine B $25,800 700 1,300 370 Machine C $9,500 600 1,300 375 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 A B Estimates Life Residual Value Depreciation Method 5 years $ 300 Straight-line 20,000 hours 800 Units-of-production formula for double-declining-balance uses cost minus accumulated depreciation (not residual value). Machine A B C Estimates Life Residual Value Depreciation Method 5 years $ 300 Straight-line 20,000 hours 800 Units-of-production 6 years 1,200 Double-declining-balance 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 or double-declining-balance uses cost minus accumulated depreciation (not residual value). (If no entry is required for a ransaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Show less View transaction list Journal entry worksheet