Javlin Farms purchased three new tractors for $25,000 each. Javlin expects the tractors to have a useful life of 6 years and a residual value of $5,000. One of the tractors has not performed as expected; therefore Javlin sold the tractor after 2 years for $18,000. Javlin sells the remaining tractors for $5,000 at the end of the 6 years. Javlin uses group depreciation on a straight-line basis. Prepare journal entries for each of the following:

Purchase of the asset.

The first and second year