$!$

Required information

PA$9-1($Static$)$ Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods $[$LO $9-2,$ LO $9-3]$

$[$The following information applies to the questions displayed below.$]$

At the beginning of the year, Grillo Industries bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine $\backslash ($ A $\backslash )$ are provided below.

$```$

Cost of the asset

$$9,000$

Installation costs

Renovation costs prior to use

$```$

PA$9-1($Static$)$ Part $1$

Required:

$1.$ Compute the amount to be capitalized for Machine A $.!$

Required information

PA$9-1($Static$)$ Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods $[$LO $9-2,$ LO $9-3]$

$[$The following information applies to the questions displayed below.$]$

At the beginning of the year, Grillo Industries bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine $\backslash ($ A $\backslash )$ are provided below.

$```$

Cost of the asset

$$9,000$

Installation costs

Renovation costs prior to use

$```$

PA$9-1($Static$)$ Part $1$

Required:

$1.$ Compute the amount to be capitalized for Machine A $.$

Required information

PA$9-1($Static$)$ Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods $[$LO $9-2,$ LO $9-3]$

$[$The following information applies to the questions displayed below.$]$

At the beginning of the year, Grillo Industries bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below.

$```$

Cost of the asset

Installation costs

$$9,000$

Renovation costs prior to use

$```$

PA$9-1($Static$)$ Part $2$

$2.$ Compute year $2$ straight$-$line depreciation expense for Machine $\backslash ($ A $\backslash ),$ assuming an estimated life of $4$ years and $\backslash (\backslash$$ $1,000\backslash )$ residual value.

Required information

PA$9-1($Static$)$ Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods $[$LO $9-2,$ LO $9-3]$

$[$The following information applies to the questions displayed below.$]$

At the beginning of the year, Grillo Industries bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine $\backslash ($ A $\backslash )$ are provided below.

$```$

Cost of the asset

Installation costs

$$9,000$

$*800$

Renovation costs prior to use $600$

Repairs after production began $500$

$```$

PA$9-1($Static$)$ Part $3$

$3.$ Prepare the journal entry to record year $2$ straight$-$line depreciation expense for Machine A $,$ assuming an estimated life of $4$ years and $\backslash (\backslash$$ $1,000\backslash )$ residual value. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

Record the year $2$ depreciation expense for Machine A$.$

Note: Enter debits before credits. $\backslash (!\backslash )$

Required information

PA$9-1($Static$)$ Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods $[$LO $9-2,$ LO $9-3]$

$[$The following information applies to the questions displayed below.$]$

At the beginning of the year, Grillo Industries bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below.

PA$9-1($Static$)$ Part $4$

$4.$ Compute year $2$ units$-$of$-$production depreciation expense for Machine B$,$ assuming a capitalized cost of $\backslash (\backslash$$ $42,000\backslash ),$ an estimated life of $30,000$ hours, $\backslash (\backslash$$ $4,500\backslash )$ residual value, and actual year $2$ use of $8,000$ hours. $($Do not round intermediate calculations.$)$