On January 1, 20X4, JetBlue purchased an airplane for $25,000,000. JetBlue expects the plane to remain useful for 5 years and to have a residual value of $5,000,000. JetBlue uses the straight-line method to depreciate its airplanes. JetBlue flew the plane for 4 years and sold it on January 1, 20X8, for $8,000,000.

1. Compute accumulated depreciation on the airplane at January 1, 20X8 (same as Decembere 31, 20X7).

2. Record the sale of the plane on January 1, 20X8.