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 $30,000 but had to be overhauled (at a cost of $2,080 ) before it could be installed (at a cost of $1,040 ) 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 $460 in each year. The shelving cost $9,850 and was expected to last 5 years, with a residual value of $710. The forklift cost $15,750 and was expected to last six years, with a residual value of $2,220. Required: 1. Compute the amount to be capitalized for the machinery