at the beginning of the year, canary bought a shed, a machine, and a trailer. the shed initially cost $21,100 but had to be renovated at a cost of $700. the shed was expected to last 7 years, with a residual value of $1,850. repairs costing $520 were incurred at the end of the first year of use. the machine cost $11,650, 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 $12,100 and was expected to last 4 years, with a residual value of $2,000.