! Required information [The following information applies to the questions displayed below.] At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost $33,200 but had to be overhauled (at a cost of $2,720) before it could be installed (at a cost of $1,360) 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 $540 in each year. The shelving cost $10,250 and was expected to last 5 years, with a residual value of $790. The forklift cost $19,350 and was expected to last six years, with a residual value of $2,380. 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.) View transaction list View journal entry worksheet No Transaction General Journal A 1 Depreciation Expense Accumulated Depreciation, Machinery Debit Credit