At the beginning of the year, a company bought three new machines for its production facilities. The machines were all different so each had to be recorded separately. Below are the costs related to each purchase?

At the end of the first year, each machine had been operated 5,200 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 thefollowing:

Transcribed Image Text:

Machine Life A 6 years Residual ValueDepreciation Method 1,000 Straight-line Units-of-production Double-declining-balance 50.000 hours 2.000 vears 1,000