On March 20, 2020, FineTouch Corporation purchased two machines at auction for a combined total cost of $217,000. The machines were listed in the auction catalogue at $110,000 for machine X and $155,000 for machine Y. Immediately after the auction, FineTouch had the machines professionally appraised so it could increase its insurance coverage. The appraisal put a fair value of $111,780 on machine X and $131,220 on machine Y. On March 24, FineTouch paid a total of $5,500 in transportation and installation charges for the two machines. No further expenditures were made for machine X, but $5,800 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 $3,800 when it is removed from service, and it expects machine Y to be useful for eight more years and have a residual value of $15,550 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