At the beginning of the year, Plummer's Sports 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:

Transcribed Image Text:

Machine A Machine B Machine C Amount paid for asset Installation costs Renovation costs prior to use $11,000 $30,000 1,000 1,000 $8,000 500 2,500 500 1,500