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P 8 - 3 ( Algo ) Computing the Acquisition Cost and Recording Depreciation under Three Alternative Methods LO 8 - 2 , 8 -

P8-3(Algo) Computing the Acquisition Cost and Recording Depreciation under Three Alternative Methods LO8-2,8-3
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At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness, an established supplier of used, new and refurbished gym equipment in Southern California. The machines immediately were overhauled and started operating. The machines were different; therefore, each had to be recorded separately in the accounts.
Machine A Machine B Machine C
Invoice price paid for asset $12,800 $37,700 $18,200
Shipping costs (paid by Plummer)1,0002,1001,500
Renovation costs prior to use 3,7002,1003,100
By the end of the first year, each machine had been operating 6,300 hours.

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