PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Algernon Companies bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset. Installation costs Renovation costs prior to use Repairs after production began $9,200 820 660 550 Required: 1. Compute the amount to be capitalized for Machine A. Total cost ompute year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 years and $1,000 residual value. ar 2 straight-line depreciation expense A Record the year 2 depreciation expense for Machine A. Note: Enter debits before credits. Transaction General Journal Debit Credit 4. Compute year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $42,840, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations.) Year 2 units-of-production depreciation expense < A worksheet Record the year 2 depreciation expense for Machine B. Note: Enter debits before credits. Transaction 1 General Journal Debit + Credit Record entry Clear entry View general journal PA9-1 (Algo) Part 6 6. Compute years 1 and 2 double-declining-balance depreciation expense for Machine C, which has a cost of $25,600, an estimated life of 10 years, and $1,400 residual value. Double-declining-balance Year 1 Year 2 7. Prepare the journal entry to record year 2 double-declining balance depreciation expense for Machine C, which has a cost of $25,600, an estimated life of 10 years, and $1,400 residual value. (If no entry is required for a transaction/event, select "No Journa Entry Required" in the first account field.) View transaction list Journal entry worksheet A Record the year 2 depreciation expense for Machine C. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit