Computing the Acquisition Cost and Recording Depreciation under Three Alternative Methods (P8-3) At the beginning of the year. Ramos Inc. bought three used machines from Santaro Corporation. The machines immediately were overhauled 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 (with separate accumulated depreciation accounts for each machine), assuming the following