Use the information presented for Ottawa Corporation in BE10-15, but assume the machinery is sold for \($5\),200 instead of \($10\),500. Prepare journal entries to

(a) update depreciation for 2016 and

(b) record the sale.

Data From BE10-15

Ottawa Corporation owns machinery that cost \($20\),000 when purchased on July 1, 2012. Depreciation has been recorded at a rate of \($2\),400 per year, resulting in a balance in accumulated depreciation of \($8\),400 at December 31, 2015. The machinery is sold on September 1, 2016, for \($10\),500. Prepare journal entries to (a) update depreciation for 2016 and (b) record the sale.