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PB$9-1($Algo$)$ 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, Feliz Industries bought a shed, a machine, and a trailer.

The shed initially cost $$21,200$ but had to be renovated at a cost of $$720.$ The shed was expected to last $7$ years, with a residual value of $$1,900.$ Repairs costing $$540$ were incurred at the end of the first year of use.

The machine cost $$11,700,$ and is estimated to have a total life of $40,000$ hours and residual value of $$900.$ The machine was actually used $2,000$ hours in year $1$ and $4,000$ hours in year $2.$

The trailer cost $$12,200$ and was expected to last $4$ years, with a residual value of $$2,000.$

PB$9-1($Algo$)$ Part $1$

Required:

Compute the amount to be capitalized for the shed.