explain in detail

7 Part of Required information The following information applies to the questions displayed below) At the beginning of the year, Starr Systems bought a shed, a machine and a trailer The shed initially cost $20,600 but had to be renovated at a cost of $600. The shed was expected to last 7 years, with a residual value of $1,600 Repairs costing $420 were incurred at the end of the first year of use The machine cost $11.400, and is estimated to have a total life of 40.000 hours and tesidual value of $900. The machine was actually used 2.000 hours in year 1 and 4,000 hours in year 2 The trailer cost $11.600 and was expected to last 4 years, with a residual value of $2.000, 2 points Print ference Required: 1. Compute the amount to be capitalized for the shed Total cost