Required information [The following information applies to the questions displayed below.] At the beginning of the year, Starr Systems bought a shed, a machine, and a trailer. The shed initially cost $21,400 but had to be renovated at a cost of $760. The shed was expected to last 7 years, with a residual value of $2,000. Repairs costing $580 were incurred at the end of the first year of use. The machine cost $11,800, 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 $12,400 and was expected to last 4 years, with a residual value of $2,000. Required: 1. Compute the amount to be capitalized for the shed. Journal entry worksheet Record the year 2 straight-line depreciation expense for the shed. Note: Enter debits before credits. 3. Compute year 2 units-of-production depreciation expense for the machine. (Do not round intermediate calculations.)