A machine was originally purchased on January 1, 2016 for $40,000. The machine was estimated to have a useful life of 5 years and no residual value. The company uses straight-line depreciation. On December 31, 2017 the machine was sold for $25,000.
Required: 1) Prepare the journal entry to record sale of the machine at December 31, 2017. (4 points)
2) Assume instead that the machine was sold for $22,000, prepare the journal entry to record the sale of the machine. (4 points)
3) Assume instead that the machine was sold for $24,000, prepare the journal entry to record the sale of the machine. (3 points)