At the beginning of the year, Plummer's Sports Center bought three used fitness machines from...
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Accounting
At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Brunswick Corporation. The machines immediately were overhauled, installed, and started operating. The machines were different; therefore, each had to be recorded separately in the accounts.
Machine A
Machine B
Machine C
Invoice price paid for asset
$
32,300
$
32,300
$
23,400
Installation costs
2,300
2,400
1,100
Renovation costs prior to use
4,000
1,000
1,900
By the end of the first year, each machine had been operating 6,500 hours.
2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
ESTIMATES
Machine
Life
Residual Value
Depreciation Method
A
9 years
$1,700
Straight-line
B
64,000 hours
3,700
Units-of-production
C
8 years
1,500
Double-declining-balance
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