At the beginning of the year, Oakmont Company bought three used machines from American Manufacturing,...
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At the beginning of the year, Oakmont Company bought three used machines from American Manufacturing, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Machine A $19,800 400 Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began Machine B $10,300 700 500 1,100 Machine C $10,000 400 800 680 260 420 By the end of the first year, each machine had been operating 4,000 hours. Required: 1. Compute the cost of each machine. 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: Machine Estimates Life Residual Value 5 years $1,300 20,000 hours 1,500 10 years 2,200 Depreciation Method Straight-line Units-of-production Double-declining-balance B REGre in the lake haleur
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