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 $8,400 400 3,100 560 Machine B $27,200 800 1,500 510 Machine C $10.900 700 1,000 725 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). Estimates Machine Life Residual Value Depreciation Method A 5 years $ 500 Straight-line B 20,000 hours 600 Units-of-production 6 years 1,200 Double-declining-balance Answer is not complete. 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 Journal Entry Required" in the first account field. Do not round intermediate calculations.) Show less No Transaction General Journal Debit Credit 1 Equipment Accumulated Depreciation - Machine B Accumulated Depreciation - Machine C Accumulated Depreciation - Machine A