Computing the Acquisition Cost and Recording Depreciation under Three Alternative Methods (AP8-3) At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Brunswick Corporation. The machines immediately were overhauled, installed, and started operating. The machines were different; therefore, each had to be recorded separately in the accounts. Invoice price paid for asset Installation costs Renovation costs prior to use By the end of the first year, each machine had been operating 4,800 hours. Machine A $11,000 500 2,500 Machine B $30,000 1,000 1,000 Machine C $8,000 500 1,500 Required: 1. Compute the cost of each machine. 2. Give the entry to record depreciation expense at the end of Year 1, assuming the following: ESTIMATES Residual Value Machine Life Depreciation Method 5 years 60,000 hours 4 years $1,000 2,000 1,500 Straight-line Units-of-production Double-declining-balance