Required information PB9-1 (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, Tangerine Incorporated bought a shed, a machine, and a trailer. The shed initially cost $21,500 but had to be renovated at a cost of $780. The shed was expected to last 7 years, with a residual value of $2,050. Repairs costing $600 were incurred at the end of the first year of use. The machine cost $11,850, and is estimated to have a total life of 40,000 hours and residual value of $900. The machine was actually used 2,000 hours in year 1 and 4,000 hours in year 2. The trailer cost $12,500 and was expected to last 4 years, with a residual value of $2,000. PB9-1 (Algo) Part 1 Required: 1. Compute the amount to be capitalized for the shed. Total cost $ 0 2. Compute year 2 straight-line depreciation expense for the shed and prepare the journal entry to record it. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet A Record the year 2 straight-line depreciation expense for the shed. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal 3. Compute year 2 units-of-production depreciation expense for the machine. (Do not round intermediate calculations.) Year 2 units-of-production depreciation expense 4. Prepare the journal entry to record year 2 units-of-production depreciation expense for the machine. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet A Record the year 2 depreciation expense for the machine. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal 5. Compute years 1 and 2 double-declining-balance depreciation expense for the trailer. Double-declining-balance Year 1 Year 2 6. Prepare the journal entry to record year 2 double-declining balance depreciation expense for the trailer. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet A Record the year 2 depreciation expense for the trailer. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal