Required information [The following information applies to the questions displayed below.) At the beginning of the year, Phantom Industries bought machinery, shelving, and a forklift. The machinery initially cost $26,000 but had to be overhauled (at a cost of $1,280) before it could be installed (at a cost of $640) 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 $360 in each year. The shelving cost $9,350 and was expected to last 5 years, with a residual value of $610. The forklift cost $11,250 and was expected to last six years, with a residual value of $2,020. Required: 1. Compute the amount to be capitalized for the machinery Answer is complete but not entirely correct. Installation costs $ 26,000 Overhaul costs 1,280 Overhaul costs 640 $ 27.920 Total cost 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 Journal entry worksheet Req 4A Req 48 Prepare the journal entry to record the year 2 straight-line depreciation expense for the shelving. (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