At the beginning of the year, Young Company bought three used machines from Vince, Inc....
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At the beginning of the year, Young Company bought three used machines from Vince, 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 Machine B Machine C Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began $8,050 350 2,400 490 $26,500 750 1,650 440 $10,200 650 1,150 550 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: TIP: Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value) Estimates Life Residual Value $ 400 Depreciation Method Straight-line Units-of-production Double-declining-balance Machine 5 years 20,000 hours 6 years 200 1,200 Complete this question by entering your answers in the tabs below Required Required 2 Compute the cost of each machine Os Machine Machine A Machine B Machine C
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