P8-3 Computing the Acquisition Cost and Recording Depreciation under Three Alternative Methods P8-3 LO8-2, 8-3 Primo Fitness 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 Primo Fitness, an established supplier of used, new and refurbished gym equipment in Southern California. The machines immediately were overhauled and started operating. The machines were different; therefore, each had to be recorded separately in the accounts. Invoice price paid for asset Shipping costs (paid by Plummer) Renovation costs prior to use Machine A $11,000 Machine B Machine C $30,000 $8,000 500 1,000 500 2,500 1,000 1,500 By the end of the first year, each machine had been operating 4,800 hours. 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: Machine ABC ESTIMATES Life Residual Value 5 years 60,000 hours $1,000 Straight-line 2,000 4 years 1,500 Depreciation Method Units-of-production Double-declining-balance