CP9-1 Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3 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 $7,850 Machine B Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began 450 2,000 450 $26,100 850 1,450 400 Machine C $9,800 750 1,750 450 By the end of the first year, each machine had been operating 6,000 hours Required: 1. Compute the cost of each machine Cost of Machine Machine A Machine B Machine C 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Estimates Machine Life Residual Value Depreciation Method Straight-line Units-of-production Double-declining-balance $ 600 5 years 50,000 hours 6 years 400 2,100 TIP: Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value) View transaction list Journal entry worksheet Record the depreciation expense for the three used machines at the end of year 1 Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal