At the beginning of the year, Ramos Inc. bought three used machines from Santaro Corporation. 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 7,000 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:br>

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Machine C Machine A Machine B Cost of the asset Installation costs Renovation costs prior to use $32,500 1,100 $12,200 $21,700 1,100 1,600 800 600