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Required information CP9-1 (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, Tyagi Manufacturing bought machinery, shelving, and a forklift. The machinery initially cost $31,200 but had to be overhauled (at a cost of $2,320 ) before it could be installed (at a cost of $1,160 ) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually usedi5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $490 in each year. The shelving cost $10,000 and was expected to last 5 years, with a residual value of $740. The forkift cost $17,100 and was expected to last six years, with a residual value of $2,280. CP9-1 (Algo) Part 1 Required: 1. Compute the amount to be capitalized for the machinery. Required information CP9-1 (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, Tyagi Manufacturing bought machinery, shelving, and a forklift. The machinery initially cost $31,200 but had to be overhauled (at aycost of $2,320 ) before it could be installed (at a cost of $1,160 ) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2 . Repair costs were $490 in each year. The shelving cost $10,000 and was expected to last 5 years, with a residual value of $740. The forklift cost $17,100 and was expected to last six years, with a residual value of $2,280. CP9-1 (Algo) Part 2 2. Compute year 2 units-of-production depreciation expense for the machinery. (Do not round intermediate calculations.) 3. Prepare the journal entry to record year 2 depreciation expense for the machinery. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the year 2 depreciation expense for the machinery. Note: Enter debits before credits. CP9-1 (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. Tyagi Manufacturing bought machinery, shelving, and a forklift. The machinery initially cost $31,200 but had to be overhauled (at a cost of $2,320 ) before it could be installed (at a cost of $1,160 ) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2 . Repair costs were $490 in each year. The shelving cost $10,000 and was expected to last 5 years, with a residual value of $740. The forklift cost $17,100 and was expected to last six years, with a residual value of $2,280. P.9-1 (Algo) Part 4 Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it. Complete this question by entering your answers in the tabs below. Compute year 2 stralght-line depreciation expense for the shelving. Prepare the fournal entry to record the year 2 straight-line depreciation expense for the shelving. (If no entry is required for a (ransaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the year 2 straight-line depreciation expense for the shelving. Notel Enter debits before credits. Required information CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applles to the questions displayed below.] At the beginning of the year, Tyagi Manufacturing bought machinery, shelving, and a forklift. The machinery initially cost $31,200 but had to be overhauled (at a cost of $2,320 ) before it could be installed (at a cost of $1,160) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2 . Repair costs were $490 in each year. The shelving cost $10,000 and was expected to last 5 years, with a residual value of $740. The forklift cost $17,100 and was expected to last six years, with a residual value of $2,280. CP9-1 (Algo) Part 5 5. Compute double-declining-balance depreciation expense for years 1 and 2 for the forklift. TIP: Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value). 6. Prepare the journal entry to record double-declining balance depreciation expense for the forklift for year 2. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the double-declining balance depreciation expense for the forklift for year 2 . Note: Fater debits before credits