CP9-1 Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods (LO 9-2, LO 9-3] At the beginning of the year, Young Company bought two used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began Machine A $7,600 200 1,500 400 Machine B $25,600 600 1,200 350 By the end of the first year, each machine had been operating 7,000 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 the following: Machine Estimates Lite Residual Value 5 years $ 600 40,000 hours 1,000 Depreciation Method Straight-line Units-of-production and depreciation Saved Help View transaction list Journal entry worksheet