On March 20, 2020, Fine Touch Corporation purchased two machines at auction for a combined total cost of $222,000. The machines were listed in the auction catalogue at $110,000 for machine X and $155,000 for machine Y. Immediately after the auction, Fine Touch had the machines professionally appraised so it could increase its insurance coverage. The appraisal put a fair value of $111,320 on machine X and $130,680 on machine Y. On March 24, Fine Touch paid a total of $5,000 in transportation and installation charges for the two machines. No further expenditures were made for machine X, but $5,200 was paid on March 29 for improvements to machine Y. On March 31, 2020, both machines were ready to be used The company expects machine X to last five years and to have a residual value of $3,200 when it is removed from service, and it expects machine Y to be useful for eight more years and have a residual value of $13.540 at that time. Due to the different characteristics of the two machines, different depreciation methods will be used for them: machine X will be depreciated using the double-diminishing-balance method and machine Y using the straight-line method, Debit Credit Date Dec. 31 Account Titles and Explanation Depreciation Expense 41300 Accumulated Depreciation - Machinery X 34086 Accumulated Depreciation Machinery Y 7214 THE