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 two 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 Machine B Amount paid for asset $7,600 $25,600 Installation costs 200 Renovation costs prior to use 1,500 1,200 Repairs after production began 600 400 350 By the end of the first year, each machine had been operating 7,000 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: Estimates Machine Life Residual Value Depreciation Method 5 years $ 600 Straight-line 40,000 hours 1,608 Units-of-production Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the cost of each machine. Cost of Machine Machine A Machine B Journal entry worksheet 1 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 1 Record entry Clear entry View general journal