Winkipop Ltd acquires an item of machinery on 1 July 2019 for a total acquisition cost of $90 000. The life of the asset is assessed as being six years, after which time Winkipop Ltd expects to be able to dispose of the asset for $10 000. It is expected that the  will be generated in a pattern that is best reflected by the sum of digits depreciation approach. On 1 July 2022, owing to unforeseen circumstances, the machinery is exchanged for a motor vehicle. The motor vehicle is two years old, originally cost $30 000 and has a fair value of $20 000.

REQUIRED

Provide the journal entry to record the disposal of the machinery on 1 July 2022.