GROUP A PROBLEMS connect More LO 9-2,9-3 2 Attachments PA9-1 Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorpo- rated. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. By the end of the first year, each machine had been operating 8.000 hours. Machine A Machine B Machine C Required: 1. Compute the cost of each machine. Explain the rationale for capitalizing or expensing the various costs. 2. Give the journal entry to record depreciation expense at the end of year 1, assuming the following: Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $9,000 800 600 500 $38,200 2,100 1,700 600 $22,000 1,200 2,200 700 Hangouts Jako