PA9-1 Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods (LO 9- 2, LO 9-3) At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. rences Cost of the asset Installation costs Renovation coste prior to use Repairs after production began Machine A $10,700 900 700 600 Machine B $35 900 800 3,400 800 Machine C $23,700 2,900 3.900 2,400 By the end of the first year, each machine had been operating 8,000 hours. Required: 1. Compute the cost of each machine, 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: Machine Life Estimates Residual Value Depreciation Method 5 years $2,700 Straight-line 20,000 hours 2.300 Units of production 10 years 1,500 Double-declining balance 1. Compute the cost of each machine. 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: Machine Estimates Life Residual Value Depreciation Method 5 years $2,700 Straight-line 20,000 hours 2,300 Units-of-production 10 years 1,500 Double-declining-balance eBook Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Compute the cost of each machine. Cost of Machine Machine A Machine B Machine C Required 2 > Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: (If no entry is required for transaction/event, select "No Journal Entry Required in the first account field. Do not round Intermediate calculations.) 20 View transaction list points Journal entry worksheet eBook References Record the depreciation expense for the three used machines at the end of year 1. Note: Enter debits before credits Transaction General Journal Debit Credit