At the beginning of the year, Morgan Inc. bought three used machines from Abruzzo Corporation.

The machines immediately were overhauled, installed, and started operating. The machines were different; therefore, each had to be recorded separately in the accounts.

By the end of the first year, each machine had been operating 7.000 hours.
$2 1.700 1.100 1.600 Required: 1. Compute the cost of each machine. 2. Give the entry to record depreciation expense at the end of year 1. assuming the following:

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Machine A Machine B Machine ( Cost of the asset $10.800 $32,500 $21.700 Installation costs 800 1,100 1.100 Renovation costs prior to use 600 1,400 1.600