Field Instruments completed the following transactions and events involving its machinery:

Required Prepare journal entries to record these transactions and events.

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2004 Jan. 1 Paid $106,600 cash plus $6,400 in sales tax for a new machine. The machine is estimated to have a six-year life and a $9,800 salvage value. Dec. 31 Recorded annual straight-line depreciation on the machinery. 2005 Dec. 31 Due to new information obtained earlier in the year, the machine's estimated useful life was changed from six to four years, and the estimated salvage value was increased to $13,050. Recorded annual straight-line depreciation on the machinery. 2006 Dec. 31 Recorded annual straight-line depreciation on the machinery. Dec. 31 Sold the machine for $25,240 cash.