Required information P8-3 (Algo) Computing the Acquisition Cost and Recording Depreciation under Three Alternative Methods LO8-2, 8-3 [The following information applies to the questions displayed below.] At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Brunswick Corporation. The machines immediately were overhauled, installed, and started operating. The machines were different; therefore, each had to be recorded separately in the accounts. Invoice price paid for asset Installation costs Renovation costs prior to use Machine A $ 18,900 1,400 3,500 Machine & Machine C $ 33,900 1,700 1,800 $ 6,100 2,000 2,900 By the end of the first year, each machine had been operating 5,300 hours. P8-3 Part 2 2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) ESTIMATES Machine 1 No Life Residual Value Depreciation Method 6 years 69,000 hours $1,000 Straight-line 2,900 Units-of-production 4 years 2,200 Double-declining-balance Answer is complete but not entirely correct. Transaction General Journal Debit Credit 1 Depreciation expense Accumulated depreciation Accumulated depreciation Accumulated depreciation 1600 12.042 3,800 2,742 5,500