At the beginning of the year, Rattner's Martial Arts Center bought three used fitness machines from Advantage, Inc. 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 4,800 hours.

Required:
1. Compute the cost of each machine.
2. Give the entry to record depreciation expense at the end of year 1, assuming thefollowing:

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ESTIMATES Machine Life Residual Value Depreciation Method 5 years 50,000 hours 4 years $1,000 2,000 1,500 Straight-line Units-of-production Double-declining-balance