How do I do this? !Required information[The following information applies to the questions displayed below.]At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness, anestablished supplier of used, new and refurbished gym equipment in Southern California. The machines immediately wereoverhauled and started operating. The machines were different; therefore, each had to be recorded separately in theaccounts.Invoice price paid for assetShipping costs (paid by Plummer)Renovation costs prior to useBy the end of the first year, each machine had been operating 6,100 hours.2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following.Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" inthe first account field.MachineABсLife9 years69,000 hours8 yearsView transaction listESTIMATES1Residual Value$1,1003,4001,800Journal entry worksheetMachine A Machine B Machine C$21,200 $32,100 $16,8002,2002,8001,2002,9003,0002,400Depreciation MethodStraight-lineUnits-of-productionDouble-declining-balanceRecord the depreciation expense for year 1. Required information[The following information applies to the questions displayed below.]At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness, anestablished supplier of used, new and refurbished gym equipment in Southern California. The machines immediately wereoverhauled and started operating. The machines were different; therefore, each had to be recorded separately in theaccounts.Required:1. Compute the cost of each machine.Invoice price paid for assetShipping costs (paid by Plummer)Renovation costs prior to useBy the end of the first year, each machine had been operating 6,100 hours.Machine AMachine BMachine CTotal Cost$Machine A$21, 2002,2002,9005Machine B Machine C$16,800$32, 1002,8003,0001,2002,400

Depreciation shows the reduction in the value of fixed asset over its useful life. It reduces the value of machine each year from its purchase. 1. Calculation of cost of each machine: The total cost of the machine includes the actual invoice cost and the cost incurred on the machine i.e., shipping cost and renovation cost. Therefore, the cost of machine A is $26,300, machine B is $37,900 and machine C is $20,400.2. Journal entries for depreciation expense: Calculation of depreciation expense: Depreciation expense for Machine A=Cost-Residual valueUseful life =$26,300-1,1009 =$2,800 Depreciation expense for Machine B=Cost-Residual value×Operating hoursEstimated hours =$37,900-$3,400×6,10069,000 =$3,050 Depreciation expense for Machine C=Cost-Residual valueUseful life×2 =$20,400-1,8008×2 =$4,650